Inflation driven by high crude oil prices is a temporary phenomenon and the economy is gradually opening up with the resumption of public and private investment, senior government officials said on Friday.
The tourism and travel sector, which has been the most affected, is also gradually recovering with international travel with the opening of some countries, they added.
“At the moment it is (inflation) a worrying factor but I don’t think this phenomenon will last long,” Dammu Ravi, Foreign Ministry secretary for economic relations, said at a virtual event. of the Public Affairs Forum. of India (PAFI).
He was responding to a question about concerns about inflation around the world. He further said the whole world was going through a transition after facing the COVID-19 crisis for two years.
“It’s just now that things are showing up. All over the world you see a different kind of equation that things are expensive, in the sense that oil has soared really high now. It pushes up the prices of oil. raw materials elsewhere This is a worrying factor.
“We need to have a balance. The inflation that worries many countries is a temporary phenomenon,” Ravi said. Fuel prices in India have also reached record highs, pushing up the prices of food and other commodities. Ravi said India is considering partnering with more countries for growth.
“The internal market is important, but we also need to be competitive globally. Our exports have stagnated over the past 10 years at around $ 300 billion and, in this context, the target set by the Prime Minister at $ 400 billion is indeed extraordinary, ”Ravi said. noted.
All international missions are working closely to achieve this goal by the end of the fiscal year, he added. The Secretary for Economic Relations noted that it is necessary to focus on micro, small and medium enterprises (MSMEs) as they are a major source of job creation and exports.
“We need to bring the debate back to MSMEs and their role in the economy. We talked about it but I don’t think much has been done in this area, especially in terms of making them sustainable and strong in the economy as participants. Ravi said. According to official estimates, there are around 6 million MSMEs creating more than 10 million jobs and accounting for 40 percent of the country’s exports.
“The objective of the policy should be to strengthen MSMEs and there should be incentives for them to move to the next level.” I think the levels of field training at customs, at the laboratory level – all of these Elements must have a collective understanding of the whole Indian government approach to tackling these issues for MSMEs in order to facilitate them. Big industry will always be able to find a way out, but it is MSMEs that face the obstacles, ”Ravi said.
He also said that the culture of entrepreneurship should be encouraged in the country, which will boost the economy. Tourism Secretary Arvind Singh said the impact of the first wave resulted in millions of job losses, a significant drop in income and a drastic reduction in the number of inbound passengers, as domestic travel took some also a blow.
“The second wave hit the sector again very hard. After July, we are seeing a recovery in the domestic sector,” he noted. He said the health ministry has issued guidelines in which quarantine rules have been relaxed for countries with which India has an agreement or which recognize the country’s vaccines.
“At least for travelers from these countries, travel will be smooth. I also expect international travel to gradually pick up as we open up,” Singh said. Information and Broadcasting Secretary Apurva Chandra, who has spent most of the past two years at the defense ministry, said local content has increased significantly in defense procurement and that a very large part of the contracts has now started to be awarded to Indian suppliers, whether in public or private sector.
“There are still limitations because some high value contracts, especially on the aircraft side … sellers,” Chandra said.
He said shipbuilding was now completely indigenous and the HAL public sector unit had won a Rs 40,000 crore contract to manufacture light fighter jets. “This will give a huge boost to the domestic sector as these are designed, developed and manufactured in India. We hold the patent for them,” Chandra said.
He pointed out that the recent Rs 20,000 crore contract awarded to Tata-Airbus will bring aircraft manufacturing to the country, with Airbus moving its manufacturing line from Spain to India. Speaking of the broadcasting industry, he said the industry, with the exception of over-the-top (OTT) players, has been hit very hard but is now back on track for growth.
Skills Development Secretary Rajesh Aggarwal said public and private investments under various programs are boosting employment opportunities. In the coming months, there will be a lot of developments to link skills development courses to education verticals in the form of credit transfers between courses, among others, he pointed out.
“I hope in the next three or four months you will see a lot of traction in this area, a lot of regulatory action in this area. Can a 12th ITI student get a bachelor’s degree, etc. Lots of regulatory movement and There is going to be a movement of funds in this area, which will have an impact on the age profile of 16-21 year olds, “Aggarwal said.
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