House Panel for Export Policy Reset, Manufacturing Focus

The Standing Committee on Finance, in its report tabled in Parliament on Tuesday, recommended a recalibration of India's export strategy with an enhanced focus on manufacturing competitiveness and achieving greater market diversification amid evolving geopolitical dynamics and continued economic uncertainties.

- Ruchika Chitravanshi

The Ministry of Finance told the panel that, ideally, the Indian economy would need to grow by around 8 per cent in real terms every year, for at least a decade, to ensure sustained prosperity and maintain economic resilience amidst rising global uncertainties.

Ajay Seth, then secretary in the Department of Economic Affairs, told the panel that, to achieve this, the investment rate in the economy must increase to around 35 per cent of GDP from the current 31 per cent. Seth added that financing this would imply higher levels of Current Account Deficit, which is challenging under the current global circumstances, and that the focus should therefore be on domestic-led growth.