Chennai: India’s economic growth will further strengthen when strategic investments based on a clear sectorial analysis are made, said Commerce Minister Suresh Prabhu.
He also emphasised on focussing on district-development led growth to drive inclusivity in the society.
“To increase economic growth, we need to facilitate strategic investments, based on clear sectorial analysis,” said Prabhu at the “Policy Round Table” organised by industry body CII in Mumbai on Thursday.
“At a time when the global economy is reeling under uncertainty due to the ongoing trade war between the US and China, India has seen its exports grow and will benefit further due to this,” a statement said quoting the Minister.
Prabhu said for inclusive and holistic development of the economy, it is key to focus on district development.
Experts from the financial sector, at the meet, opined that re-routing is good for Google Maps, but not for the financial sector. They suggested that the regulators and non-banking financial companies (NBFCs) need to closely track the signals coming from the providers of risk capital about the NBFCs they are investing in.
The Indian private sector with its enormous depth and breadth has shown increased maturity and is a major recipient of private equity flows, added the experts.
India has also emerged as the investment market of choice for the world’s largest pension funds and sovereign wealth funds, they said adding that on the FDI front, India has already surpassed China to become the most favoured FDI destination.
The PTI has reported that according to trade experts, the ongoing trade war between the US and China will help India tap export opportunities in both the countries in areas such as garments, agriculture, automobile and machinery.
The Federation of Indian Export Organisations (FIEO) said the trade war between the US and China is benefitting India.
FIEO, president, Ganesh Kumar Gupta said India’s exports to the US went up by 11.2 per cent in 2018, while to China it rose 31.4 per cent in the same year.
“China is also more willing than ever before to provide better market access to India on a wide range of agriculture and processed food products. India would be getting better access to Chinese market as China would like to prove to its citizen that the tariff war has little or no impact on it,” he said.
The US and China are significantly raising import duties on each others’ products. In international commerce parlance, trade war means increasing import duties by trading partners.
Recently, the US increased import duties from 10 per cent to 25 per cent on $200 billion worth of Chinese imports. The US is demanding China to reduce the massive trade deficit which last year climbed to over $539 billion.
India’s bilateral trade with China and the US stood at $89.71 billion and $74.5 billion, respectively, in 2017-18.