Lower tariffs can spur 7% growth, boost competitiveness: NITI's V-C | Current Affairs | Vision IAS

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Lower tariffs can spur 7% growth, boost competitiveness: NITI's V-C

2 min read

Economic Growth and Competitiveness

Suman Bery, Vice Chairperson of NITI Aayog, suggested that lowering tariffs could achieve a 7% economic growth rate and enhance competitiveness. Bery emphasized that India should make decisions based on its own interests rather than external pressures, particularly from the US. He pointed out the indirect effects of global financial conditions, such as US dollar movements and bond yields, on India's economy.

Job Creation and Future of Work

Union Labour Secretary Sumita Dawra discussed the employment-linked incentive scheme and highlighted sectors like AI, digital interventions, tourism, and health as key drivers for job creation. Radhicka Kapoor from the International Labour Organization emphasized that AI has the potential to augment rather than replace jobs.

Technology and Strategic Focus

  • Ajai Chowdhry, HCL co-founder, advocated for a stronger government focus on technology sovereignty, suggesting the creation of a ministry dedicated to technology, and highlighted the need for a strategic plan for semiconductors and quantum technology.

Agriculture Sector

Ramesh Chand from NITI Aayog stated that agriculture remains India's strength, citing significant growth over the past decade. Chand identified Punjab as a model for agricultural transformation, despite existing challenges.

Investment Climate

Samir Arora of Helios Capital pointed out that capital gains tax negatively affects investor sentiment, particularly for foreign investors who face additional forex risks.

Manufacturing Opportunities

  • Sunil Vachani of Dixon Technologies noted India's advantage in manufacturing as the world seeks alternatives to China, recommending a delay in reciprocal tariffs until a free-trade agreement is secured.

Luxury and Tourism

Julien Tornare, CEO of Hublot, saw potential in developing India's luxury sector, suggesting that enhancing the tourism ecosystem could showcase both cultural and brand strengths.

Renewable Energy

Leaders in the renewable sector, including Amit Singh, Deepesh Nanda, and Girish Tanti, emphasized localizing supply chains and developing talent as essential to advancing renewable energy projects.

Work-Life Balance

  • Radhicka Kapoor and Hiranmay Pandya discussed the need for a human-centric approach to technology, highlighting the creation of new job types and the importance of upskilling the workforce.
  • Tags :
  • Economic Growth
  • Tariff Strategy
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