Ranchi/New Delhi, April 4: There is a need to promote Total Factor Productivity in India to boost growth in the country, stated Amitabh Kant, CEO, NITI Aayog, while addressing the plenary session on “Global Slowdown – Implications for the World’s Fastest Growing Economy” at the CII Annual Session 2016: Building National Competitiveness, which is being organized in New Delhi on Monday.
He emphasized that no country in the world has grown without dramatic increases in Total Factor Productivity.
According to Kant, India is a very complex place to do business, but this is changing. The mindset of the bureaucracy is changing and the focus has now shifted to outcome based implementation of policies.
Kant stated that the challenge for the country is to look at sustaining growth rates of 9-10 percent over the next three decades to remove poverty. He pointed out that there is a need to focus on disruptive technology to promote this growth. He also felt that women need to play a major role in India’s growth.
Kant was also of the view that domestic industry needs to play the role of wealth creators in the economy and India cannot rely on FDI alone. He also stressed that there is a need to focus on export promotion.
Sunil Mittal, past president, CII, and chairman, Bharti Enterprises, stated that the present global situation is a crisis of sorts and India needs to take advantage of this crisis. The Indian government is undertaking reforms to make India more competitive globally.
While these reforms will take time to make a real impact, he was of the view that Indian industry must take advantage of the situation and step up investment. He called upon the banking system to step up lending to facilitate growth.
Jamshyd N Godrej, past president, CII, and chairman and managing director, Godrej & Boyce Manufacturing Co. Ltd., stated that the two biggest deficits that the country needed to bridge were physical and social infrastructure.
He felt that without an adequate focus on areas such as education, healthcare and housing, the economy will lag behind. He called for balanced growth and social development.
The focus must shift to smaller towns and cities to ease the pressure on the larger cities. In terms of industrial growth, the emphasis must shift from services to manufacturing.
According to Godrej, industry needs to focus on innovation to build competitiveness rather than seek protection.