The global economic environment may be challenging, but India is well positioned to take advantage of new growth opportunities, Finance Minister Nirmala Sitharaman said, noting that as countries re-evaluate their supply chains, India hopes to become a key partner for many countries that want to diversify. various. source of goods and services.
Mrs. Sitharaman made the remarks on Monday (October 21, 2024) while delivering a special lecture on ‘India’s Economic Resilience and Prospects Amid a Challenging and Uncertain Global Environment’ at Columbia University.
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He said India wants to increase its domestic capacity, and build resilience against external shocks.
“While the past decade has seen global growth led by broad multilateral trade, the coming years, I think, will be defined by strategic economic partnerships and India is well poised to take advantage of this transition.” He said the global economic environment may be challenging, but “India is well positioned to capitalize on new growth opportunities.
“The shift to a more fragmented global economy, characterized by redefined alliances and changing trade patterns, may benefit India. As countries reevaluate their supply chains, India hopes to become a key partner for many countries seeking to diversify various sources of goods and services,” he added. International and Public Affairs.
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Ms. Sitharaman arrived in New York on Sunday (October 20, 2024) from Mexico where she chaired the Tech Leaders Roundtable in Guadalajara. He has also visited the TCS headquarters in Guadalajara.
In New York, he addressed the Roundtable on ‘Investment Opportunities in India’ at the New York Stock Exchange and participated in a fireside conversation about decades of economic reform and India’s economic growth with IBM Chairman and CEO Arvind Krishna.
From New York, Sitharaman will travel to Washington DC to participate in the Annual Meeting of the International Monetary Fund (IMF) and the World Bank, the 4th G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting, in addition to the G20 FMCBG Joint Meeting. , Minister of Environment, and Minister of Foreign Affairs; and G7 – Round Table of African Ministers.
Ms. Sitharaman notes that it may be an understatement to say that “we are living in an era of uncertainty, which is constantly increasing before.
“The world is currently facing various challenges, such as the conflict in the Middle East and between Russia and Ukraine. There is also the possibility of other destabilizing events such as dollar liquidity shocks, global rate increases due to trade wars and oil price shocks – all at the same time. In addition to these events, the emergence China’s real terms of trade, and as a surprise, countries must take measures to maintain domestic production,” he said.
He stressed that despite the increasingly complex global environment, India’s macroeconomic fundamentals remain “sound”, a solid foundation on which to build future growth.
He said that in 2013, India was the 10th largest economy and now it is the fifth largest economy.
The International Monetary Fund estimates that it will become the third largest economy by 2027. “India’s contribution to global growth is projected to increase by 200 basis points in the next five years,” it said.
He further emphasized that India’s trade policy has also undergone significant reforms, with a focus on greater facilitation and integration with its major economic partners. India is developing a more competitive and export-oriented economy by pursuing free trade agreements with countries such as the UAE and Australia, along with initiatives such as the Production Linked Incentive scheme and the One District One Product scheme.
“Furthermore, India must continue to strengthen its position in the geopolitical landscape. As the world experiences a realignment of power dynamics, developing economies like India must navigate complex international relations. This requires a diplomatic approach where economic interests are balanced with strategic concerns,” he said and added that countries countries look inward, globally there is a risk of retreating into de-industrialization.
He said the rise in the Global Innovation Index and its impact on sectors such as high capital goods, renewable energy and medicine, signaled the potential to become an important player in the global market.
“Another important aspect of the policy agenda is strengthening India’s financial sector. The health of our banking system marked by low levels of NPAs (nonperforming assets) and provisioning for bad loans reflects the reforms that have been implemented to improve asset quality,” he said.
He added that in 2047, when India celebrates 100 years of independence, “we will have the opportunity to define a new era of prosperity, not only for our own citizens, but also for the global community.
“India’s role in the world is growing, and we are ready to engage constructively with the international community, share innovations and contribute to global peace and prosperity,” he said, while citing the example of the COVID-19 pandemic during India. The vaccines we provide are developed and produced for countries around the world.
“The coming decade will be defined by how effectively India manages the demographic dividend, strengthens global partnerships, and navigates the complexities of a rapidly changing world. While there are challenges ahead, there are also many opportunities for India to lead the way, not only economically, but for shaping the global discourse on technology, sustainability, and inclusive growth,” he said.
Published – 22 October 2024 11:21 IST
Nirmala Sitharaman in New York