Industry must tap world’s trust in India, says PM Modi

NEW DELHI: PM Narendra Modi on Tuesday invoked “trust and reliability” to urge domestic industry to manufacture products for the international markets and be part of the global supply chain, while suggesting that this could turn out to be the mantra for getting back on the path towards faster growth.
“Today, there is greater trust in India and there is renewed hope... The world is looking for a trusted, reliable partner, India has the potential, strength and ability. Industry must take full advantage of the trust that has developed in India. It is your responsibility that manufactured-in-India products are associated with trust, quality and competitiveness. You move two steps, and the government will support you by taking four steps forward. I can assure you that I stand with you... Trust me, getting growth back is not so difficult,” the PM said.
The exhortation at industry chamber CII’s annual session came along with the promise of more structural reforms, and was promptly seen as aimed at cashing in on growing worry on the dependence on China as the world's factory.
The PM spoke about India’s decision to rush medical supplies to over 150 countries during the global health emergency when no country was in a position to help others, and said this had enhanced goodwill that would benefit Indian industry. The reference is significant because of the contrast it presented with widespread resentment over China using its monopoly over PPEs and other medical supplies to engage in profit gouging.
Soon afterwards, the ministry of electronics and IT, which launched schemes to promote local production by global and Indian players, took a cue from the PM. “We hope to be part of a trusted value chain,” electronics and IT secretary Ajay Sahni said at a press conference. On Sunday, commerce and industry minister Piyush Goyal had told TOI that India had emerged as a “dependable trading partner”, indicating the government’s pitch along these lines as it seeks investments and partnerships to be part of the global supply chain as several companies are looking at diversifying their production bases beyond China.
Modi used the CII platform to dwell on the theme of a self-reliant India and underlined that it was crucial to stabilise and rev up the economy, while saving lies during the pandemic. He also defended the decision to impose a nationwide lockdown, arguing that it was important not just to be prepared with physical resources but also save human resources.
Modi, however, said it was time the focus shifted to reopening of the economy. “We have left lockdown behind and are now in Phase 1 of unlocking. With greater opening up, economic activity is also expected to pick up from June 8,” he said, adding, “We will definitely get growth back.” He said the recent reforms were meant to help the country benefit in the long run, while addressing the immediate challenges. He referred to a “Five Is” formula of intent, inclusion, infrastructure, investment and innovation to drive India’s efforts to regain growth.
“For us, reforms mean the ability to take decisions, and then to take them towards a logical conclusion,” he said via a video link and added that the idea was to reduce government intervention.
He said a dozen sectors had been identified for promoting manufacturing with steps already initiated in case of air-conditioners, furniture, leather and footwear.
“We need to invest in such a robust supply chain which will strengthen India’s participation in the global supply chain… It is important that we manufacture products that are Made-in-India and made for the world. Can we set new targets to reduce our imports? We need to fix targets to enhance our productivity,” Modi said.
But the bottomline was to be self-reliant in crucial sectors. “Self-reliant India will be fully integrated and supportive of the world economy. But a self-reliant India does not mean that we will not rely on others in strategic sectors. It is about creating strong enterprises in India. Enterprises that can become global forces. It is about generating employment. It is about empowering our people to come out and create solutions that can define the future of our country,” he said.
Modi said while the desire of countries to increase cooperation among themselves had grown , a churn was underway over the effectiveness over the old ways and policies, while the expectations of India had risen.