India needs to realize the opportunity arising out of re-alignment of supply chains and investment flows in the world economy to achieve its full growth potential, says Anup Wadhawan at PHDCCI Webinar

New Delhi: Shri Anup Wadhawan, Commerce Secretary, Ministry of Commerce and Industry, Government of India in a Webinar on Stimulating the Growth Trajectory of Indian Economy organised by PHD Chamber of Commerce and Industry (PHDCCI) said that the COVID-19 should be seen as the opportunity as there is inclination of the world to re-align supply chains and investment flows. He mentioned that India has been very well exploring the short term opportunity and possibilities in some sectors such as pharmaceutical. In this regard, he suggested that in medium to long term, there is a need to focus on enhancing capacities, increasing capabilities, expanding manufacturing and industrial sector, so that India achieve its full growth potential and take the full advantage of the opportunity arising out of re-alignment in the world economy.

He said that in 2008-09, the global financial crises has hit the world economy, however, Indian economy remained saved due to relatively less exposure. Then in 2013-14, the global economic crises emerged and again the world economies were hit. In 2019-20, due to trade war, unilateral trade policies adoption by certain countries, protectionism, extra-territorial laws, among others, significant slowdown was experienced, which started from the economies of US, Europe.

Shri Anup Wadhawan said that the impact of these events have been overpowered by the daunting impact of pandemic COVID-19, which hit the world in later part of 2019-20 and caused loss of life and economic slowdown. He mentioned that as a result of COVID-19 scenario, India’s exports decreased and GDP growth contracted by more than 20% in Q1 FY 2021. However, on the back of effective reform measured by the Government, the recovery was seen in September 2020. He stated that there has been improvement in GDP in Q2.

 

FY2021 and exports in some sectors including pharmaceutical, agriculture, had done very well. He suggested that the need of the hour is to sustain the growth of these sectors and at the same time, focus is required to revive the other sectors and bring them to atleast pre-COVID levels. He opined the inertia of the system and effective policy support will bring the economy back to pre-COVID levels, however, the potential of India’s economy is much far than that.

Shri Wadhawan recommended that there is a need to offer best investment environment in India as compared to the rival countries who already offer a good investment environment. He mentioned that the Government has already been working on promoting ease of doing business in the country, which will be continued in the coming times well. He highlighted about the importance of Production Linked Incentive (PIL) scheme. He opined that, at this juncture, collective efforts of Government, industry and all other stakeholders are required to help India to achieve the medium to long term growth potential.

Industry body PHD Chamber of Commerce and Industry (PHDCCI) organized Webinar on Stimulating the Growth Trajectory of Indian Economy, today. Shri Anup Wadhawan, Commerce Secretary, Ministry of Commerce and Industry, Government of India graced the Webinar as Guest of Honour.

Shri Sanjay Aggarwal ji, President, PHDCCI, stated that the recovery in the key economic and business indicators on the back of a series of stimulus announcements by the Government in last 8 months, totalling to around Rs 30 lakh crore, will go a long way in our fight against the pandemic impact of

COVID-19 on trade, industry and economy. He discussed about the results of 10 indicators of QET (Quick Economic Trends) of economic and business activity tracked by PHDCCI, which indicates that economy is in steady growth trajectory and moving in right direction. He appreciated the provision of Rs 1.46 lakh crore under Production Linked Incentive Scheme for 10 champion sectors.

He highlighted the growth projections by RBI and said that these are in line with expectations of PHDCCI EBM Index (Economic and Business Momentum Index). He suggested that the Government should focus on further reducing the cost of doing business in the country including the costs of power, costs of capital, costs of compliances, costs of logistics, costs of land and availability of land and costs of labour. He opined that the demand creation and increased spending on infrastructure will have a multiplier effect on all sectors of the economy including enhanced production possibilities, increased investments and employment creation. He recommended that the focus should be on strengthening the MSMEs sector, providing special support to tourism sector, continuous facilitation of industry and effective implementation reforms at the grassroot level.