Despite global headwinds, Indian economy will stay on course: FM Sitharaman
Washington (PTI): The Indian economy will stay on course despite global headwinds and is projected to grow at seven per cent in fiscal 2022-23, Finance Minister Nirmala Sitharaman has said, attributing this to the conducive domestic policy environment and focus on key structural reforms.
Sitharaman's remarks came during her intervention at the plenary session of the international Monetary Finance Committee (IMFC) on Friday.
The meeting itself, she said, is being held at a juncture when the global economic outlook is clouded by key downside risks: growth slowdown in major economies, cross-border effects due to the ongoing geopolitical situation, inflationary pressures led by escalating food and energy prices that have adversely impacted vulnerable economies.
Despite global headwinds, the Indian economy will stay on course and is projected to grow at seven per cent in FY 2022-23. This is an outcome of the conducive domestic policy environment and the government's focus on key structural reforms to boost growth, she said.
She told members of the IMFC that the Indian Government has taken initiatives to protect growth while pursuing inflation management.
The government has ensured the availability of free food grains to more than 800 million vulnerable families for the past 25 months, through the country's massive public distribution network, she said.
Last-mile delivery of financial services to the poor has been a key priority of the government and this has been aided by India's digital public good infrastructure.
Today, India is leading the world in terms of digital payments innovations with our transaction cost being the lowest in the world, Sitharaman said.
Of the view that the IMF needs to increase resources available for emerging and low-income countries to safeguard the global financial system, Sitharaman underscored that concluding the 16th General Review of Quotas (GRQ) by December 15th, 2023 is vital for increasing the voting rights of emerging market economies (EMES) in line with their relative positions in the world economy.
India's quota in the IMF, which determines voting shares in the multi-lateral lending agency, is 2.75 per cent. China's quota is 6.4 per cent and that of the US is 17.43 per cent.
A general review allows the IMF to assess the adequacy of quotas in relation to both the members' balance of payments in financing needs and the Fund's ability to help meet those needs.
Observing that a key downside risk to global recovery is the exacerbated debt distress in many low-income countries, Sitharaman said it is therefore important that the IMF provides the necessary support to deal with the balance of payments-related vulnerabilities.
As such she welcomed IMF's recent initiative of a new food shock window to help countries address food insecurity.
On climate change, she emphasised the importance of a multilateral approach with the principles of equity and common but differentiated responsibilities and respective capabilities.
India has set out an ambitious climate action path through its updated Nationally Determined Contributions that demonstrates India's commitment at the highest level to decoupling economic growth from greenhouse gas emissions.
Transfer of climate finance and low-cost climate technologies from developed to developing countries has assumed critical significance, Sitharaman said.
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'Made in India' must become symbol of excellence, global competitiveness: PM
New Delhi (PTI): Prime Minister Narendra Modi on Sunday called upon states to encourage manufacturing, boost 'ease of doing business' and strengthen the services sector to make India a global services giant.
Addressing the 5th National Conference of Chief Secretaries here, Modi emphasised the need for quality in governance, service delivery and manufacturing, and said the label 'Made in India' must become a symbol of excellence and global competitiveness.
He said India has the potential to become the world's food basket and the country must move towards high-value agriculture, horticulture, animal husbandry, dairying and fisheries to become a major food exporter.
"Called upon states to encourage manufacturing, boost 'Ease of Doing Business' and strengthen the services sector. Let us aim to make India a Global Services Giant," Modi said in a series of posts on X.
The theme of the three-day conference, which began on December 26, was 'Human Capital for Viksit Bharat'.
Modi observed that this conference marks another decisive step in strengthening the spirit of cooperative federalism and deepening Centre-State partnership to achieve the vision of a 'Viksit Bharat'.
Highlighting India's demographic advantage, he said nearly 70 per cent of the population is in the working-age group, creating a unique historical opportunity which, when combined with economic progress, can significantly accelerate the journey towards a 'Viksit Bharat', according to an official statement.
Modi said India has boarded the "Reform Express", driven primarily by the strength of its young population, and empowering this demographic remains the government's key priority.
He noted that the conference is being held at a time when the country is witnessing next-generation reforms and steadily moving towards becoming a major global economic power.
Underlining the need to strengthen 'atmanirbharta' (self-reliance), he said India must pursue self-reliance with zero defect in products and minimal environmental impact, making the label 'Made in India' synonymous with quality and strengthening the commitment to "zero effect, zero defect".
The PM urged the Centre and states to jointly identify 100 products for domestic manufacturing to reduce import dependence and strengthen economic resilience in line with the vision of 'Viksit Bharat'.
In higher education, too, he said, there is a need for academia and industry to work together to create high-quality talent.
He highlighted that India has a rich heritage and history with the potential to be among the top global tourist destinations.
Modi urged the states to prepare a roadmap for creating at least one global-level tourist destination and nourishing an entire tourist ecosystem.
He said it is important to align the national sports calendar with the global sports calendar.
"India is working to host the 2036 Olympics. India needs to prepare infrastructure and sports ecosystem at par with global standards," he said.
The prime minister said the next 10 years must be invested in the states, only then will India get the desired results in such sports events.
Every state must give this top priority and create infrastructure to attract global companies, he said.
In the services sector, Modi said, there should be greater emphasis on other areas like healthcare, education, transport, tourism, professional services and artificial intelligence, etc. to make India a global services giant.
He said India will soon be launching the National Manufacturing Mission (NMM).
States should work in tandem with the discussions and decisions emerging from the conferences of both chief secretaries and DGPs to strengthen governance and implementation.
The PM said similar conferences could be replicated at the departmental level to promote a national perspective among officers and improve governance outcomes in pursuit of a 'Viksit Bharat'.
In conclusion, he said every state must create a 10-year actionable plan based on the discussions of this conference with one, two, five and 10-year target timelines wherein technology can be utilised for regular monitoring.
The conference featured a series of special sessions that enabled focused deliberations on cross-cutting and emerging priorities.
It marks another important milestone in strengthening the Centre-State partnership through structured and sustained dialogue on national development priorities, according to the statement.
The PM's principal secretaries P K Mishra and Shaktikanta Das, Cabinet Secretary T V Somanathan, members of the NITI Aayog, chief secretaries of all states and Union territories, and domain experts attended the meeting.
Anchored in the prime minister's vision of cooperative federalism, this conference serves as the forum where the Centre and states collaborate, designing a unified roadmap to maximise India's human capital potential and accelerate inclusive, future-ready growth.
It has been organised annually over the past four years.
The first conference was held in Dharamshala in June 2022, followed by subsequent conferences in New Delhi in January 2023, December 2023 and December 2024.
