As India celebrates its 75th birthday amid changing geoeconomics, it is set to change gears to touch its target of achieving a $5trillion economy by 2025. The world is already looking at it as an alternative hub for supplies. At a time when humanity is facing one of its worst crises in dealing with the Covid 19 pandemic, New Delhi, which is the largest vaccine manufacturer, needs to further leverage its position as the most credible supplier of affordable medicine and vaccines across the globe, experts said.
While repealing the controversial retrospective taxation policy just ahead of the Independence Day has served as a huge sentiment booster for foreign investors, India must work on its strength areas instead of adopting the China growth model, they added.
“Recently, fixing mistakes of the past, we have decided to end retrospective taxation. The way in which this is being appreciated by the industry makes me believe that this will lead to the trust between industry and government being strengthened,” Prime Minister Narendra Modi said at the annual session of the Confederation of Indian Industry.
The Prime Minister also stressed that the government is implementing reforms not out of compulsion but out of conviction.
Policy makers said that the focus would be on further implementation of reforms.
Sources also said that India is aggressively looking to ink trade pacts with other countries and regional blocks to secure its rightful place in global supply chain management.
Meanwhile, Niti Aayog’s CEO Amitabh Kant said that India needs to focus on its own areas of strength and not copy China.
“India cannot become the next factory of the world by copying China… We have always got into sunset areas of growth, this is the time to get into sunrise areas of growth,” Kant said. After India pulled out of the much-hyped Regional Comprehensive Economic Partnership (RCEP), it has been exploring bilateral trade deals. Besides Australia, New Delhi is also expected to revive talks on a free trade agreement with the UK and also the EU.
India, which has not signed any free trade agreement since 2012, will push through bilateral trade agreements in the wake of the emerging geopolitical order instead of going in for multilateral deals, an insider told India Narrative.
However, the biggest challenge for India is to ensure that a third Covid 19 pandemic is averted to ensure that its economy is no more disrupted.