CII President says growth of agriculture, manufacturing, service drive and climate action key

Sanjiv Puri, president of the Federation of Industry of India (CII), said the Indian economy is built on a strong foundation and will rebound in a very resilient way even if there is short-term economic conflict.“The economic impact of war is difficult to assess based on what happened. There is no important thing at the moment, except for some interference that may be in some closed and proximal areas,” Puri told ET. “The industry is committed to addressing any problems that occur and if there is any interference, rebounding in a very resilient way.”
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According to Puri, the economy must open fire in all three aspects (agriculture, manufacturing and services) – and if India wants inclusive and sustainable growth, it also needs to address the issue of climate change.

Agriculture absorbs 40% of India’s labor force. Puri said we need to focus on agriculture, develop vertically and generate more to enhance farmers’ incomes and meet the growing global food demand.

Second, we also need to power labor-intensive sectors such as footwear, clothing, furniture and tourism to leverage their full potential, besides enhancing value-added in areas such as electronics and semiconductors, and so on.
The third is to take advantage of the increasing opportunities in the service industry.
“In terms of service, there will be more opportunities in the future because while we have population advantages, the world is facing population challenges,” he said.
This can be accomplished by enhancing expenditures for healthcare, education and skills, Puri said.

Consumption
Puri said the economy reported higher consumption in the past few quarters, but some of these factors were clearly positive. “Interest rates have begun to ease, inflation has fallen, and the monsoon is expected to be better, which will improve farm and rural incomes,” he said.

“I think that in this year’s budget, the rebound in capital expenditure and personal income tax benefits will also increase consumption in the short term,” he added.

Drive growth
Prie believes that the government’s continued focus on the reform agenda will further boost economic growth. “High-level working groups that carry out regulatory reforms in the center and states, as well as factors such as land and labor, will be key drivers of sustained economic growth,” he said.

The role of FTA
The government is putting a lot of hard work into the Free Trade Agreement (FTA). India-UK FTA’s recent conclusions are historic, and we expect two, one with the EU and the other with the US. These are very important, he said, because it will help us align with global value chains that make up 70% of global trade.

He added: “This will also open up markets for labor-intensive sectors such as clothing, footwear, toys, and also for our small and medium-sized enterprises (MSMES).

Speaking about the India-US trade deal, negotiations are underway, Puri said there are two important things to take care of.

“One is the rule of origin, which should be quantified and quantified at the department level. The second one should have full transparency so that we cannot see the transshipment happening, etc.”

Worry
In terms of monitorable substances, inflation may be achieved with sustained economic growth, he said. “While inflation is expected to be benign based on weather forecasts, I will still be marked by monitors given the background of climate change, followed by geo-economic conditions that require constant monitoring,” Puri added.