India is perennially doing a tightrope walk to maintain the fiscal deficit but we have not thought of long-term provisioning for the country’s needs.
The report expects the large local market potential, low labour costs, macroeconomic stability and the hope of strengthening ongoing reform momentum will help achieve these objectives.
"There has to be a concerted effort by all the stakeholders in making the economy robust again and I urge India Inc. to take the lead in this regard," said the Vice-President
It can be noted that there has been a slew of reports lately about a stronger recovery being underway after the jolt caused by the pandemic.
India's GDP is estimated to contract by a record 7.7 per cent during 2020-21 as the COVID-19 pandemic severely hit the key manufacturing and services segments.
The GDP contracted by a record 23.9 per cent in the April-June quarter following a national lockdown to prevent the spread of the coronavirus.
The informal sector, which accounts for four-fifths of employment, has also been subject to severe income losses during the pandemic.
It all boils down to finding resources, and the balance sheet doesn’t look pretty with just the Centre’s fiscal deficit at Rs 10.75 lakh crore for the April-November period.
It noted that Facebook and Google's investment in Jio Platforms in 2020 worth USD 5.7 billion and USD 4.5 billion respectively were testaments to this trend.
The gap between India’s potential and reality is reflected by the fact that the India Story continues to be defined, quote-unquote ‘emerging’ for three decades since 1991.
India had overtaken the UK in 2019 to become the fifth largest economy in the world but has been relegated to 6th spot in 2020.
He also defended the contentious farm sector reforms, saying the Narendra Modi government had the courage to do what others could not.
In the first-ever visit by a head of the Indian Army, Gen Naravane travelled to Saudi capital city Riyadh last week where he held talks with top military brass.
The multi-year real estate cycle is no longer a drag on the economy, he said, adding that there is a pro-growth shift in the country's industrial policy.
Addressing the FICCI Annual Convention, he said India prioritised saving lives during the COVID-19 pandemic and the government's policies and actions were oriented towards that.