BHUBANESWAR: World Bank Group president Ajay Banga on Thursday advised India to not overly focus on tariffs, but instead look at the opportunities available, particularly given the country’s vast domestic market and strong consumption demand.
Speaking to mediapersons during his visit to the Central Tool Room and Training Centre (CTTC) here, Banga said, India’s vast domestic consumption demand provides a strong cushion against external shocks.
“India is a large country with very high domestic demand. That is a big opportunity in itself,” he underlined while commenting on the recent US tariff measures and rising protectionism.
On global trade and the India-EU free trade agreement (FTA), Banga said bilateral and regional agreements have become increasingly important as the structure of global trade has changed. Over the last two decades, he said, global trade has quadrupled and the share of emerging markets has doubled from 20 per cent to 40 per cent, making countries like India central to global commerce.
“I think the India-EU trade deal could boost business confidence by lowering tariff and non-tariff barriers on both sides, provided it is phased carefully to protect domestic industries. But, if you have to open up, you have to open up well,” he said.
The WB president exuded confidence about India’s ability to sustain high growth and said the economy is well placed to achieve the 6.8-7.2 per cent growth as projected for 2026-27 in the Economic Survey report. “India has consistently demonstrated its ability to deliver high growth. The real issue is not the percentage of growth.
If India wants to become Viksit Bharat by 2047, then the country should continue to invest in skilling, infrastructure and business-friendly reforms,” he said. He said, around 12 million young people enter the job market every year. “If you skill them the right way, you can give them opportunities not just in cities, but also in villages, smaller towns and even overseas,” he said.
Banga observed India has made admirable progress in infra development in the last decade. “There has been expansion of airports, roads and digital infrastructure. Do you want more infrastructure? Yes, because India is a large country with enormous opportunities in different regions. There are ways that jobs will get created. And we have talked about this in the World Bank very clearly,” he said.
Banga outlined three key pillars for creating jobs. “One is you must have infrastructure, not just physical, but also human capital, skilling, healthcare and education. Second, you must have the right business friendly policies. And there India has made some progress. But as you know, Prime Minister Narendra Modi is driving changes in land and labour laws. These are very important for continuing growth and ease of doing business in India,” he observed.