'Experts want steps to build globally competitive India'

Last week, Prime Minister Narendra Modi outlined his vision for Atmanirbhar Bharat (self-reliant India) while addressing the top businessmen at the annual session of the Confederation of Indian Industry (CII). From a gist of the deliberations that followed, it is far from clear whether any of them bought that vision.

The call for self-reliant India conveys reducing our dependence on others for goods, services, or even investment. However, the PM said the concept of Atmanirbhar Bharat rested on intent, inclusion, investment, infrastructure, and innovation. He talked of boosting the ‘Make in India – Make for the World’ campaign, but also said there were several sectors such as air conditioners and mobile phones where we could manufacture in India and reduce dependence on imports. 

In the deliberations that followed, the heads of large businesses emphasised the need to increase productivity, build world-class infrastructure, invest in science, digitalisation, brand building and innovation, strengthen institutions, and bridge the gap between policy articulation and implementation.

Prominent economists advocated the need for restoring jobs and providing income support to the needy along with substantial infrastructure spending for reviving demand and a sustained recovery of the Indian economy. One of them said India should become more export-oriented and take advantage of revival of major economies and world trade. Another said India has the potential to become a world-class exporter, provided it is able to develop products without subsidies and meet domestic demand for everyone in the country, in a competitive manner. In short, the dominant underlying theme was to find ways for India to become globally competitive. 

The former head of NITI Aayog, Arvind Panagariya, said the Covid-19 crisis sweeping the world is unlikely to affect the process of globalisation. He wanted India to open up further and re-visit the recent hikes in import tariffs and reduce them. India must stay engaged with RCEP (Regional Co-operation and Economic Partnership), a proposed free-trade agreement in the Indo-Pacific region between the ten member states of the Association of Southeast Asian Nations (ASEAN) plus Australia, China, Japan, New Zealand, and South Korea) and take the negotiations to a logical conclusion with a view to not only enhance trade but also bring in the much-needed investment into the country. Other panelists, including a globally respected economist and chief of a leading business group, echoed similar views. Many other renowned speakers advocated regional cooperation as key to building a collaborative and prosperous future.

Union Minister Nitin Gadkari talked about encouraging small businesses to invest in technology and meet global quality standards, improving opportunities for export, integration with global value chains and supplies to some of the global giants that India is trying to woo. 

In a separate interaction with EY India, former chief economic advisor to the government, Arvind Subrmanian, said unless India’s exports grow at 15 per cent, we won’t get 8 per cent growth and for that, we should reverse some of the protectionist measures taken. “If we turn protectionist, I don’t know how we can be an exporting power. Self-sufficient exporting powerhouse is an oxymoron,” he said.

Thus, the captains of industry and leading economists seem to believe that we should take all necessary steps to build a “globally competitive India” rather than a “self-reliant India”. 

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