Stimulus package is in the works and reforms will follow, says Amitabh Kant
The proposed reforms will seek to make India a global hub in manufacturing and exports, Amitabh Kant said in a video conference with experts and industry executives
The government is giving shape to a stimulus package that will be followed by a raft of reforms meant to help India capture opportunities emerging in the post-coronavirus world, NITI Aayog’s chief executive Amitabh Kant said on Tuesday.
Kant’s mention of a stimulus package comes at a time business leaders and experts have sought a ₹10 trillion package to tide over a severe liquidity crisis caused by the lockdown imposed to battle covid-19 and provide funds to the poor for a recovery in demand for goods and services.
The proposed reforms will seek to make India a global hub in manufacturing and exports, the chief of the federal policy think tank said in a videoconference with experts and industry executives.
“The government will come out with a package. This will be accompanied by reforms across a whole range of areas, but the key is to make India a manufacture and export hub. Digital payments should drive financial inclusion. Health care should become truly digital. India will have to use technology to leapfrog," Kant said, with the disclaimer that he does not wish to pre-empt the government’s announcement about a stimulus package.
The government is working on making ports more efficient for exports and imports, and on creating zones where investors could set up facilities for exports without being constrained by archaic laws related to land and labour, said Kant. Investments above a baseline will be incentivized, Kant said. The government is working on further digitizing and liberalizing export-import procedures, he said. New schemes to promote textile-making and production of auto components are also in the offing, Kant said.
The areas that hold big opportunities for India include artificial intelligence (AI) and mobility, said the NITI Aayog chief. Rapid transformation is set to take place in transportation, AI, telecommunications, genomics and education, he added.
India is gradually opening up its economy but how the rest of the curbs on movement are lifted will depend to a large extent on how the pandemic evolves.
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