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No downside risk to India’s growth assessment of 6.5-7 per cent; Other than food prices, inflation not a challenge: Secretary, Department of Economic Affairs, MoF
Nov 20, 2024
No downside risk to India’s growth assessment of 6.5-7 per cent; Other than food prices, inflation not a challenge: Secretary, Department of Economic Affairs, MoF
Need to invest in R&D to create IP, develop indigenous technologies and boost defence manufacturing: Defence Secretary
Digital economy backbone for India's leapfrog growth toward Viksit Bharat; Industry must embrace resilience and risk-taking innovations: MeitY Secretary
Indian textile market to reach $350 bn by 2030; Industry should attract much larger share of global exports: Textiles Secretary
Need to increase focus on incentivizing domestic production of green steel: Steel Secretary
NEW DELHI, 20 November 2024: Mr Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance, Govt of India today while addressing the ‘Curtain Raiser – FICCI’s 97th AGM and Annual Convention’, said that there is no downside risk to the India’s growth assessment that was announced in the Budget this year. “We started the year with estimates in the Economic Survey of 6.5 per cent to 7 per cent growth, and I see that we are still very much within that zone. Additionally, I don't foresee any significant downside risk. The numbers in the second quarter do show that some goods or services may not be at the same level where they were a year back,” he added.
Speaking on inflation, Mr Seth stated that food prices have been a problem area, and it is largely due to unusual rainfall but other that the food prices, inflation is not a challenge. He further stressed that there is need to work towards more market-based reforms rather than a sector-based reform.
Mr Rajesh Kumar Singh, Secretary, Ministry of Defence said that exports by Indian defence companies have grown 31 times in the last 10 years. The Ministry of Defence spends 75 per cent of its capital budget on domestically manufactured products. “Defence spending at 2 per cent of GDP. The goal is to increase private sector contribution to 50 per cent, up from the current 30 per cent, compared to DPSU’s 70 per cent share of Value of Production (VoP),” he added.
Mr Singh further stated that FDI in defence manufacturing is now at 75 per cent and up to 100 per cent in special cases. Foreign OEMs may partner or form a JV with an Indian partner for Indian Defence contracts, he added. “We need to invest in R&D to create IP and design in order to develop indigenous technologies and boost defence manufacturing,” he emphasized
Mr S Krishnan, Secretary, Ministry of Electronics and Information Technology said, “The digital economy is the backbone for India's leapfrog growth toward Viksit Bharat 2047. To achieve this, our industry must embrace resilience and risk-taking innovations.” He further stated that on the electronics front, demand remains robust. Moreover, domestic production is gaining momentum through indigenization, driven by the successful implementation of PLI, he added.
Highlighting the investment opportunities, Mr Krishnan said, "Product design presents a massive opportunity for India's tech sector to lead globally. By fostering innovation and leveraging our talent pool, we can shape the future of technology for Viksit Bharat.”
Ms Rachna Shah, Secretary, Ministry of Textiles said that in the textile sector, the market size is around $170 billion with a growing domestic demand. “Our target is to increase the market size from $170 billion to $350 billion by 2030 and are looking at a much larger share of global export pie. India's textile sector occupies a unique position, boasting a comprehensive value chain that encompasses the entire spectrum from fiber to fabric, processing, apparel, garments, technical textiles, and fashion,” she added.
Ms Shah also stated that the global players are looking at the growing Indian market and manufacturing in India for the domestic market and manufacturing in India for the export market is something that will attract more foreign players.
Mr Sandeep Poundrik, Secretary, Ministry of Steel said that Indian steel sector needs investment of Rs 10 lakh crores to meet the capacity expansion target of 300 MT by 2030. The first half of 2024-25 has seen a 13 per cent increase in steel consumption but if demand continues to rise and investment doesn’t increase, India might become a net steel importer by 2030, he added.
He further highlighted key areas for next 5-10 years including increasing focus on incentivising domestic production of green steel; Indigenous production of specialty steel is needed to meet the growing domestic demand since India doesn’t have enough capacity to meet current demands and technology upgradation for Indian steel sector to become efficient.
Dr Anish Shah, President, FICCI delivered the opening remarks.