NEW DELHI: The need to return to 7-8% growth, despite global challenges and geopolitical tensions, and to ensure that the country remains on track to reach developed nation status by 2047 dominated deliberations at a meeting of economists with PM Modi on Tuesday.
At pre-budget consultations on the theme ‘Maintaining India’s growth momentum at a time of global uncertainty,’ the PM emphasised that the 2047 goal could be achieved with changes in mindset.
The PM’s remark was prompted by plans to seize opportunities that may open up for the country in the wake of a possible tariff war between the US and China and to explain how India can benefit from and participate in the global value chain.
Economists emphasized the need to accelerate growth and suggested various issues, including generating employment, developing skills, raising farm productivity, attracting investment, and boosting exports.
Growth slumped to a seven-quarter low of 5.4% in the July-Sept quarter of the current financial year, alarming policymakers and prompting calls for a cut in interest rates.
Experts stress the need to step up growth.
The sharp slowdown in growth in the second quarter has also prompted several agencies, including RBI, to revise growth downwards. Sources said a significant part of the meeting saw experts reinforcing the need to step up growth and deepen reforms across sectors, from the farm sector to taxation reforms both on indirect and direct taxes. Economists suggested a range of reforms for the farm sector, such as a robust value chain for vegetables, including TOP (tomato, onion and potato). Suggestions were also made on strategies to deal with climate change and energy transition.
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Issues linked to trade and exports were prominently discussed, with experts suggesting several measures, including faster conclusion of free trade agreements, a strategy on tariffs and internationalisation of the rupee. For creating jobs, suggestions were made to deepen vocational training and inculcate the dignity of labour.
An official statement issued after the meeting, which was coordinated by the think tank Niti Aayog, said participants shared their views on several significant issues including navigating challenges posed by global economic uncertainties and geopolitical tensions, strategies to enhance employment, particularly among youth, and create sustainable job opportunities across sectors, strategies to align education and training programmes with the evolving needs of the job market, enhancing agricultural productivity and creating sustainable rural employment opportunities, attracting private investment and mobilising public funds for infrastructure projects to boost economic growth, creating jobs and promoting financial inclusion, boosting exports and attracting foreign investment.
FM Nirmala Sitharaman, Niti Aayog vice chairman Suman Bery, CEO BVR Subrahmanyam, and senior PMO and finance ministry officials attended the meeting. Experts who attended included Surjit S Bhalla, Ashok Gulati, Sudipto Mundle, Dharmakirti Joshi, Janmejaya Sinha, Madan Sabnavis, Amita Batra, Ridham Desai, Chetan Ghate, Bharat Ramaswami, Soumya Kanti Ghosh, Siddhartha Sanyal, Laveesh Bhandari, Rajani Sinha, Keshab Das, Pritam Banerjee, Rahul Bajoria, Nikhil Gupta and Shashwat Alok.
