Despite having only recently emerged from a very tense military face-off with Pakistan, the Indian economy is slated to overcome shortcomings and in fact project a 6.5 per cent growth, said CII President Sanjiv Puri.
In an interview with PTI, he said about India’s GDP growth: “We are looking at 6.5 per cent. We believe this number can be achieved fundamentally, because the fact is, we are starting with a reasonably good foundation, robust economic foundation”.
Puri went on to assert that India must pursue bilateral trade pacts with key trading partners to protect national interests in the backdrop of increasing trade barriers. He added that since private investment is picking up across various sectors like energy, transportation, metals, chemicals and hospitality, current geopolitical uncertainties could lead to “some cautiousness” in investment.
“Therefore, the countries that India is pursuing, and the big ones among them, being the US and EU, are important. We should do whatever we have to do from a national interest perspective, and I think, most important is these bilateral trade agreements”.
Recommending the creation of a three-tier tariff architecture for certain areas to enhance competitiveness, Puri said that domestic drivers of growth need a close looking at. He also emphasised on the urgency to turn attention toward agriculture, climate change, and adaptation.
“These domestic drivers of growth and competitiveness are where we should really press the pedal hard so these can kind of offset some of the uncertainties. I think further interest rate easing is another expectation,” he said.
The rural demand is picking up, while urban has been a little flat, although it also should start moving up in a couple of quarters, he added.
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