Economic Survey presents a futuristic vision of the economy while supporting inclusiveness: CII President Sanjiv Puri
Reacting to The Economic Survey 2024-25 tabled in Parliament today, Mr Sanjiv Puri President CII said that the Survey “is cogent in its outlook, convincing in its assessment of the economy and thought-provoking in its stance towards policy. The prognosis on the economy, which is estimated to grow in the range of 6.3-6.8 per in FY26 is realistic considering that the world is going through turbulence with considerable geo economic uncertainty, excess capacities in certain geographies which may spill over to the Indian economy, and the challenges of the climate uncertainty”.
While agreeing with the prognosis made in the Survey, Mr Puri stated, “The Indian economy is at a turning point of its economic ambitions and the reform impetus to boost investment, innovation and jobs would be the key to unlock India’s next stage of growth to 7 percent and beyond”.
CII supports the Survey’s view that the higher public investment for the next two decades, is important, as it would boost the overall competitiveness of the Indian economy and drive growth both in the immediate term and the long term. Simultaneously, the Survey has correctly flagged that private investment and PPP is quintessential for catalyzing growth in the economy and closing the infrastructure gap.
The Survey has rightly recognized agriculture as a sector with potential and steps need to be taken to strengthen the current initiatives in this sector, including the PPP initiatives, to provide a boost to rural demand. The rural heartland, which is the key driver of domestic demand, has recently witnessed a nascent demand revival which needs to be nurtured. Some of the government policies delineated by the Survey such as the policies for diversification of agriculture, improving irrigation infrastructure, focus on agriculture R&D, judicious fertilizer use, increasing limit for collateral free agriculture loans, discouraging overproduction of water intensive cereals among others are extremely relevant to address the key concerns of farmers and trigger a virtuous cycle of income, consumption, productivity and growth.
CII concurs with the Survey’s emphasis on nurturing the manufacturing sector, especially MSMEs, considering its role in creating jobs and exports. The strong message articulated in the Survey of initiating second generation reforms through ‘Ease of Doing Business’ at state level and reducing the compliance costs for business through deregulation is very much in line with CII suggestions. CII also agrees with the suggestion that companies should be incentivised to go beyond the MSME status and become large.
On trade, enhancing India’s participation in global value chains, export facilitation efforts and reducing trade costs, as indicated in the Survey, would boost India’s export competitiveness.
On sustainability, while the government has taken commendable initiatives to boost renewable energy and green investments, the Survey calls for the need to prioritise investment in grid infrastructure. Developing energy storage capacity, a strong adaptation strategy, secure sourcing of critical minerals as articulated in the Survey need priority attention. The Survey is spot on in emphasising on the use of technology for leapfrogging into the Indian economy into the future.
The limitations faced by India in producing critical minerals should be addressed to help India with its green energy transition. Use of technology and digitisation in areas such as education, health, agriculture is critical for India to leapfrog to a developed country status. According to Mr Puri, “we need to strengthen action to ensure that the transformative impact of technology and sustainability is clearly visible as the country proceeds on the Amrit Kaal journey with confidence and takes firm steps to join the league of developed nations by 2047”.
The Survey has forcefully articulated the need for improving the quality of life by suggesting a rethink on improving education and health systems through technology solutions and integrating innovation and technologies to reap the demographic dividend and promote inclusive growth. Boosting women's workforce participation in workforce, prioritizing targeted skill development and providing entrepreneurial support, as suggested by the Survey, are all critical, added Mr Puri.
Overall, the emphasis on reforms in critical areas such as agriculture, manufacturing including MSMEs, services, infrastructure and exports would help to accelerate the growth engines of the economy and create jobs. Sectors amongst others, such as emerging technologies , innovation, education, health and skilling, strengthening the supply chains, that could benefit from further reforms, need further attention to realise the ambitious vison of Viksit Bharat, said Mr Puri.
With the Economic Survey articulating a cogent and comprehensive review of India’s growth trajectory, the stage is set for the Union budget to build on the precepts outlined in the Survey to rejuvenate demand.
New Delhi,
31 January 2025