No. PR- 117
October 1, 2021
Focus On Export And Government Spending In Short Run For Enhancing Growth Says Dr. Subbarao, Renowned Economist And Former Governor, RBI
The COVID-19 pandemic has been a time of learning on multiple fronts and presented us with an opportunity to revisit our economic model for improvisation, stated Shri. Sanjeev Sanyal, Principal Economic Advisor, Ministry of Finance in his address during a virtual session on the topic ‘India’s Resilience: Converting Recession to Rebound’ organized by the PHD Chamber of Commerce and Industry (PHDCCI).
Sharing his views on the current state of the economy, Shri Sanyal went onto explain how during the peak of COVID-19, the Indian government emphasised on mobilising available resources. The business sector received various incentive packages to keep it stable through the lockdown. The Hon’ble Finance Minister also announced a series of mid-size packages. Despite being adversely affected by the outbreak of the pandemic, significant parts of the economy continued doing reasonably well, he explained.
Dr. D Subbarao, renowned Economist and Former Governor, Reserve Bank of India stated that despite the second wave being a lot more devastating, the economy was able to escape any serious consequences. He further mentioned that though the economy is showing signs of recovery, yet there is a wide gap that is building up between the rich and poor as a direct result of the pandemic. This rising inequality need to be rectified by adequate measures. Therefore, he said, that in the short term, we need to focus on exports and government spending while for long term we need all four factors for GDP — consumption, investment, government spending and exports to come together. To attain a higher growth and sustainability in the long term, he suggested expanding the government spending to create more jobs and increase the consumption.
Dr. Ajay Chhibber, renowned Economist and Distinguished Visiting Scholar to the Elliott School of International Affairs and the George Washington University, US said the economy is witnessing a K-shaped recovery. He said that we have come back a full circle to where we were two years prior. We must consider where we were before the pandemic -we weren’t doing that well back then either. He emphasized that we need to prioritize on reducing the cost of doing business in the country. He explained that we have higher electricity prices for the producers, higher freight rates, higher turnaround times in ports. He embarked upon reviving consumer demand back on track for a growing economy.
Mr. Atantra Das Gupta, Director, South West Asia and Head, Samsung HME spoke about the impact of Covid-19 on the healthcare sector. He stated that the maternal and infant mortality rates have reduced. Life expectancy has gone up from 58 to 69 years. He raised the issue of limited budget in health care as India’s spending on health sector is quite low. There is huge gap in infrastructure health care system so there is need for strong technological intervention in the building resilient infrastructure for inclusive growth, he said. India has the potential to supply largest volume and velocity of data which can benefit countries around the world. Data can fuel the economy and so inclusiveness is needed on that front too.
Addressing the 116th Annual Session of PHD Chamber of Commerce and Industry, Shri Bhupesh Baghel, Hon’ble Chief Minister of Chhattisgarh, said that Indian economy has witnessed various changes amid COVID scenario. Though economy is improving now and coming back on-track, focus should be on taking the problems faced into consideration and finding appropriate solutions to them, he said.
Hon’ble Minister said that despite the significant impact of COVID on economy, agriculture sector remained resilient.
While talking about the performance of economy of Chhattisgarh amid COVID scenario, Hon’ble Minister mentioned that the State Government has worked towards strengthening its rural economy much before the emergence of COVID.
Mr. Peter Rimmele, Resident Representative to India, Konrad-Adenauer-Stiftung (KAS), said that he is honoured to be among the esteemed guests at the august gathering of PHD Chamber’s 116th Annual Session.
While highlighting the need of supply chain diversification at the global level, he said that India holds a great future in this aspect. He also discussed about the Indo-German relations for cooperation in potential sector for robust growth.
Shri Hemant Soren, Hon’ble Chief Minister of Jharkhand, said that the State of Jharkhand has been in the forefront in the area of industry from the decades with presence of large and renowned companies.
Through the platform of PHD Chamber’s 116th Annual Session, Hon’ble Minister invited large companies to come and set-up businesses in the State.
The event ended with a vote of thanks by Shri Saket Dalmia, Vice President, PHDCCI.
The 116th Annual Session of PHD Chamber of Commerce & Industry is supported by Vestige | Konard Adenauer Stifung | DCM Shriram | JK Tyre | Paramount Cables | Radico | Marble City | KVS Premier | Uflex | Apeejay Stya | Blossom Kochhar | Bry-Air | Jaipuria Institute of Management | The Malt Company | MV Cotspin Limited | Eaks Auto | Hindustan Tin Works | Sage Middle East to India | Victor Agencies | Sahai Group of Companies | Speciality Merchandising Services.
PHD Chamber of Commerce and Industry