Inclusive Growth Remains Central to India's Economic Strategy, Says Ashwini Vaishnaw

India is poised to sustain an economic growth rate between 6-8% while managing inflation effectively, according to senior Union Minister Ashwini Vaishnaw. During a session at the World Economic Forum Annual Meeting, he highlighted that simplifying tariffs and customs laws is crucial for boosting exports. Vaishnaw emphasised that inclusive growth is central to India's economic strategy, alongside a focus on manufacturing, services, and legal simplification.

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Inclusive Growth and Economic Strategy

The minister attributed Prime Minister Narendra Modi's third-term victory to inclusive growth, ensuring economic benefits reach all societal segments. Vaishnaw, who oversees railways, information and broadcasting, and electronics and IT, stated that India's talent pool is unparalleled globally. This has led to increased trust in India due to its policies, prompting companies to relocate factories and value chains to the country.

Industrialist Sanjiv Bajaj also spoke at the session, praising the Indian government for fulfilling its promises to the industry. He noted India's leadership in various sectors, including emerging fields like drones. However, Bajaj pointed out that a 6-6.5% growth rate isn't sufficient for a nation as large as India; it requires at least 7-7.5% growth.

Challenges and Opportunities

Vaishnaw acknowledged areas needing improvement, such as land procurement. He stressed the importance of accelerating growth and attracting private capital. The government has made significant progress but must continue efforts to enhance economic expansion.

The minister reiterated that simplifying tariffs and customs laws remains a priority for the government. He believes export-led growth could be a significant differentiator for India in the global market.

India's economic blueprint focuses on inclusive growth, manufacturing, services, and legal simplification. The government's commitment to these areas aims to ensure sustained economic progress while addressing challenges like land procurement and private capital attraction.