In order to respond to the recent protectionist anti-globalisation trends in the developed world, Indian policymakers are mulling a reorientation in the economy with more accent on the domestic market over foreign trade, the government said on Wednesday.
"Our expectations of the world are changing...there have been unexpected developments globally," Finance Secretary Ashok Lavasa said at an event of industry chamber Assocham here, referring to developments like the British vote on exit from the European Union (EU) and the election of Donald Trump as the US President on a protectionist campaign platform.
"For instance, while in the 1990s we spoke of removing walls, today people talk of constructing walls between nations that are both real and figurative," he said.
"So, we have to reorient. Going by trends, trade will not be the driver to the next phase of world economic growth. The next phase of global growth would involve the deepening and stregthening of local economies," Lavasa added.
In this connection the Secretary mentioned the two major reforms being carried out in the form of the Goods and Services Tax (GST) to usher in a unified market and the Bankruptcy Code to make doing business easier in India.
"The GST legislation, that the country waited for so long, is being discussed in Parliament," he said.
"And the Bankruptcy Code office, which will make it easier for unviable businesses to exit, got inaugurated this morning (Wednesday)," he added.
--IANS
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