New Delhi: The Parliamentary Standing Committee on Finance has suggested a "recalibration of India's export strategy" with a heightened focus on manufacturing competitiveness and greater market diversification to beat the impact of external headwinds.
To realise this, the government needs to expand support for production linked incentive schemes into high-technology and green manufacturing, where India has the potential to gain a strategic edge, the panel said in a report titled 'Roadmap for Indian Economic Growth In Light Of Global Economic and Geopolitical Circumstances', which was submitted with the Lok Sabha Tuesday.
The US has levied a 50% tariff on most Indian goods, which, some analysts said, can potentially shave 0.3-0.8 percentage point off Indian growth if it persists. India, the panel said, needs to pursue new bilateral and regional trade pact to reduce reliance on a few markets and mitigate tariff risks.
The panel advised regulators to be wary of the influence of foreign investors and their potential impact on market volatility, while lauding the government's efforts to attract foreign capital. It recommended that domestic economic resilience be prioritised and regulators need to continue streamlining regulations.
CPSE listing, privatisation
In a submission, the finance ministry told the panel that the Department of Public Enterprises (DPE) has been asked to identify central public sector enterprises (CPSEs) for closure or privatisation in the non-strategic sector, in consultation with relevant ministries. The DPE will then get in-principle nod from the Cabinet Committee on Economic Affairs to move with any such plan. The panel called on the government to expedite the process.
The ministry also said the economy must ideally grow around 8% at least for a decade, for which the investment rate must rise to 35% of GDP from the current 31%.
To realise this, the government needs to expand support for production linked incentive schemes into high-technology and green manufacturing, where India has the potential to gain a strategic edge, the panel said in a report titled 'Roadmap for Indian Economic Growth In Light Of Global Economic and Geopolitical Circumstances', which was submitted with the Lok Sabha Tuesday.
The US has levied a 50% tariff on most Indian goods, which, some analysts said, can potentially shave 0.3-0.8 percentage point off Indian growth if it persists. India, the panel said, needs to pursue new bilateral and regional trade pact to reduce reliance on a few markets and mitigate tariff risks.
The panel advised regulators to be wary of the influence of foreign investors and their potential impact on market volatility, while lauding the government's efforts to attract foreign capital. It recommended that domestic economic resilience be prioritised and regulators need to continue streamlining regulations.
CPSE listing, privatisation
In a submission, the finance ministry told the panel that the Department of Public Enterprises (DPE) has been asked to identify central public sector enterprises (CPSEs) for closure or privatisation in the non-strategic sector, in consultation with relevant ministries. The DPE will then get in-principle nod from the Cabinet Committee on Economic Affairs to move with any such plan. The panel called on the government to expedite the process.
The ministry also said the economy must ideally grow around 8% at least for a decade, for which the investment rate must rise to 35% of GDP from the current 31%.
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