Synopsis
India's Chief Economic Advisor, V. Anantha Nageswaran, emphasizes the importance of domestic growth drivers in light of shifting global trade dynamics, suggesting reforms and leveraging the young workforce for sustainable economic progress.Key Takeaways
- Dependence on domestic growth drivers is crucial.
- The era of globalization is over.
- India must implement economic reforms.
- Deregulation can boost employment.
- Public transport is key for energy transition.
New Delhi, Jan 31 (NationPress) India's Chief Economic Advisor V. Anantha Nageswaran stated on Friday that the nation must depend on domestic growth drivers as the phase of globalization and rapid, expansive trade movements are now a thing of the past.
During a press briefing following the presentation of the Economic Survey in Parliament, the Chief Economic Advisor (CEA) noted that the value of trade impacted by newly imposed import restrictions was merely $170 billion in 2014-2015, yet has surged to over $1.3 trillion today. He underscored that imports, exports, and investment flows are increasingly viewed through the lens of strategic competition.
This transformation in global trade dynamics is anticipated to persist for an extended period, creating a new reality that India must navigate cautiously, he remarked.
Nageswaran observed that India is on a consistent growth trajectory, even as globalization decelerates. This transition presents both challenges and fresh opportunities. To sustain growth, India must concentrate on economic reforms and leverage its youthful labor force.
The CEA emphasized that India must “raise its game” in terms of domestic growth as the global landscape and growth parameters have shifted.
He pointed out three pivotal growth levers for India to achieve its goal of ‘Viksit Bharat’ by 2047, with deregulation being paramount to stimulate growth, the role of the private sector in nation-building, and an energy transition that aligns with India’s priorities.
“Deregulation is not only about enhancing the ease of doing business; it also serves as a pathway to employment,” the Chief Economic Advisor remarked.
Furthermore, he mentioned that increasing the area under irrigation and land pooling, as well as granting farmers the liberty to sell to anyone at any price, could unlock a 1 percent incremental growth in the agriculture sector.
The CEA underlined India’s expanding role as a vital player in global services, showcasing the country’s growing impact in this domain.
However, he also noted that over the last 25-30 years, China has retained a dominant position, particularly in high-tech and medium-tech industries.
Additionally, he stressed the necessity for public transport to assume a more significant role in energy transition and energy demand in the future.
