India's Economic Growth and International Relations - Union Minister Piyush Goyal's Address at Asia Economic Dialogue
Union Minister Piyush Goyal addressed the Asia Economic Dialogue in Pune. He expressed his conviction that India will be the world's third-largest economy in 4-5 years. He believes India will drive its economy closer to 35-40 trillion dollars by 2047.
Goyal encouraged industry to be proud of India's achievements and strong macroeconomic fundamentals. India is recognized as the country of the decade and has a young demographic dividend.
Asia has both democracies and non-transparent, non-rule-based economies. India has been wanting to internationalize and engage with technology and modern ways of working. India is recognized as the country of the decade, if not the country of the 21st century.
Impact of Russia-Ukraine Conflict has had a severe effect on the developed world more than developing countries. The conflict has had a devastating effect on food security, energy security, inflation, interest rates, and growth.
The then-government's decision to offer to become a part of RCEP was ill-conceived. RCEP agreement could have been the death-knell of all manufacturing in India. India's trade deficit with China increased to around 48 billion dollars by 2014. Prime Minister Narendra Modi decided to not join RCEP on November 4th, 2019.
India needs to sensitize its people to take more pride in Indian products. India believes in the rule of law, their right to liberty, and freedom of expression. It will take some time for India to create adequate systems and manufacturing systems.
India is now a partner the world can trust. India converted the COVID-19 crisis into an opportunity. India's ability to innovate and come out with vaccines has been a world record. India did not let down a single international commitment during COVID-19.
India had the highest ever exports in 2021-22.
India has completed the fastest FTA in the world with UAE and Australia, and is currently negotiating with Israel, Canada, EU, UK, GCC, and Russia. The US Congress's approval is required for FTA approval in the US, and the Indo Pacific Economic Framework is being conceptualized as an alternative framework for closer ties with the US.
The government is promoting circular economies and sustainable products such as organic farming and textiles, and aims to increase agricultural organic produce exports from Sikkim to Rs. 8000 crores by 2030.
The Minister stressed the importance of strengthening domestic manufacturing capabilities and becoming 100% indigenized in the auto industry to reduce indiscriminate imports. Large companies should pay MSMEs promptly to support small businesses and increase profitability. Any effort to increase exports will have an impact on MSMEs, and the government is providing concessions and schemes for MSMEs, startups, and women entrepreneurs.