“Covid-19 crisis has shattered the foundation of human being’s thinking. The crisis has weakened the position of advanced economies such as USA, EU and UK. India has emerged as a trusted partner in the global geopolitics. Central banks across the world are pumping record amount of liquidity to stimulate their economies. The global financial market is flushed with surplus liquidity and India seems to be the logical destination for this liquidity. India stands to benefit from the potential shift in global value chain after the Covid-19 crisis,” said Mr Suresh Prabhu, Member of Rajya Sabha and Prime Minister Narendra Modi’s Sherpa to G20 and G7, while addressing a webinar organised by MVIRDC World Trade Center Mumbai and All India Association of Industries (AIAI).
“I expect India to be the global manufacturing hub for medical devices, engineering, electronics and other manufacturing sector. India will also be a major hub for medical tourism,” Mr Prabhu said He also remarked that micro, small and medium enterprises (MSMEs) are going to be the backbone of future industrial development of India. MSMEs play an important role in India’s exports, employment and GDP growth. Large companies depend on MSMEs for sourcing components and services.
He added that the next phase of economic growth will come from more than 700 districts in the country. The government has identified six districts, including Varanasi, Solan, Ratnagiri and Visakhapatnam, for district-led industrial growth.
Therefore, India’s growth story will not only emanate from the macro level but also at district level. Consultative approach is important for government policymaking, which is being adopted through district-led growth.
Speaking about India’s position in global negotiations on trade issues, Mr Prabhu said the country will have to strategise in order to promote its national interest and then its global interests.
In conclusion, he said that contract manufacturing is an effective way of becoming competitive in the global market.
