homeeconomy NewsEconomic Survey 2020: See potential for India to grab market share in low end manufacturing, says PMEAC member
Economic Survey 2020: See potential for India to grab market share in low-end manufacturing, says PMEAC member
The labour cost in absolute terms are still very competitive but we just need to do whatever we can in terms regulatory side, in terms of infrastructure, in terms of skilling that would improve the productivity, said Anantha Nageswaran, Member, PMEAC to discuss the key highlights from the Economic Survey.
Discussing the key highlights of the Economic Survey, Venkatesh is in conversation with Anantha Nageswaran, Member, PMEAC said, "The survey has said that 2020-2021 real GDP growth would come somewhere between 6-6.5 percent, I would put that estimate as reasonable maybe a tad on the optimistic side."
"But the risks are balanced between the upside and the downside. Maybe the final outcome will be closer towards the lower end of the range than the upper end of the range given what is happening right now as we speak with respect to the virus outbreak and the risk of asset market, stock markets around the world correcting more meaningfully in the course of the new financial year," he said further clarifying that the views mentioned by him were on a personal capacity and not as the member of the economic advisory council.
Furthermore, “Any number which is closer to 10 percent would be considered a realistic estimate on nominal GDP growth coming in 2021. If the reality turns out to better than that in terms of the nominal GDP clocking 11-12 percent growth, all the better. An assumption that is closer to 10 percent would be more realistic and also would lend more credibility to the budget numbers,” he said in an interview with CNBC-TV18.
When asked whether abolishing Essential Commodities Act would be the right thing to do, he said the survey has done well by making such bold ambitious suggestions. "It has been said by several other experts as well that one of the best ways of helping the Indian farm sector is not so much in terms of input subsidies and loan waivers but basically letting the farmers sell wherever, whenever, whatever they can at whatever price the market is willing to pay. So kneejerk export bans and setting minimum export prices or kneejerk imports etc. those are the ways in which farmer is stifled. So, empowering farmers by removing legal restrictions and rules and regulations is the best way to achieve doubling of framers income and also real growth in the farm sector,” he added.
Talking about 'Assemble in India' concept Nageswaran said, “India still has a chance to carve on some market share for itself in light manufacturing. India does have the potential to be able to grab some market share in light and low-end manufacturing. The labour cost in absolute terms are still very competitive but we just need to do whatever we can in terms regulatory side, in terms of infrastructure, in terms of skilling that would improve the productivity. So, the productivity adjusted labour costs would become even cheaper and that potential still exists. Therefore, 'Make in India' for the world is still not an unrealistic grandeur ambition, it should be pursued.”
First Published: Jan 31, 2020 7:03 PM IST
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