Indian Economy News

India will continue to be the world’s fastest-growing large economy for many decades to come: Union Minister Piyush Goyal at Asia Economic Dialogue, Pune

The Union Minister for Trade and Industry, Textiles and Consumer Affairs, Food and Public Distribution, Mr Piyush Goyal, addressed the Asia Economic Dialogue in Pune. The Minister expressed his opinion that India would have the third-largest economy in four to five years. He said that "My own conviction about the way India is growing is that we will drive our economy probably closer to 35 - 40 trillion-dollar economy by 2047. The desire of every Indian is to be second to none.” The Minister pointed out that Asia has its own unique dynamics, with both democratic and non-democratic economies coexisting in the region. According to the minister, developed nations have been more severely impacted by the Russia-Ukraine conflict than developing nations.

The Minister claimed that by allowing India’s population to become accustomed to cheap, inferior Chinese goods over the years, we have harmed India's interests. The trade deficit with China, which was under US$ 2 billion dollars around 15 to 16 years ago, grew to almost US$ 48 billion dollars by 2014. The Minister spoke of the necessity to educate our people to take more pride in Indian products as they prohibited our products from India from going to China for valid or illicit causes. "By converting the COVID-19 issue into an opportunity, we were able to open the world's eyes to India," stated the Minister. As India had the highest exports in 2021-22."

The Minister informed industry executives that the India-UAE Agreement, which was finished in 88 days, was the fastest Free Trade Agreement ever concluded in the history of the globe. We are currently in negotiations with Israel, Canada, the EU, the UK, and the GCC. Russia and its EAU partner nations also desire to expedite talks with India.

The Minister emphasised the necessity for the auto industry to be entirely indigenous. "We must increase our domestic manufacturing capacity; we must be resilient and competitive; and our customers must care more about the potential that is being lost to indiscriminate imports." The Minister noted that when it comes to payment terms for MSMEs, large corporations that benefit from low borrowing costs should consider paying MSMEs on time so that the smaller enterprises can also increase their profitability. We are one of the top five countries in addressing climate change objectives. We also advocate for goods like eco-friendly textiles. We are also putting a lot of effort into promoting organic farming. For example, we plan to increase Sikkim's agricultural organic food exports from their current level of US$ 0.96 million (Rs. 8 crores) to US$ 965.22 million (Rs. 8000 crores) by 2030.

In terms of resilient supply chains, technology alliances, and extending our economy through indirect means, we aim to catch up to the US. Together with the US Commerce Secretary, a sizable corporate delegation to India for Holi will include leading US firms. MSMEs will always be extremely important to the global economy, thus we are investing a lot of time and money in building the India-US collaboration. As a result, MSMEs, startups, and female entrepreneurs are all provided unique concessions.

According to him, the Indian economy would be driven by the aspirations of the country's young people to enjoy the good things in life, and they will aid in our growth to a 47 trillion-dollar economy by the year 2047.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.