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NEW DELHI : Vice president M. Venkaiah Naidu on Thursday called upon the industry to work with the government to implement reforms.

“The Vice President, Shri M Venkaiah Naidu today called upon the industry to work with the Government on implementing various reforms with greater vigour and pave the way for sustained economic growth in the coming decade," vice president's secretariat said in a statement.

He was speaking at an event organized by the Confederation of Indian Industry (CII).

“Stating that an annual GDP growth rate of 8 to 8.5% with continued productivity growth will be required to stimulate entrepreneurship, create jobs and drive balanced progress, Shri Naidu noted that India has been one of the 18 outperforming emerging economies over the past decade," the statement said.

This comes against the backdrop of an uptick in the Indian economy after suffering a disruption in the wake of coronavirus pandemic that originated in Wuhan, China. While OECD on Tuesday slashed its growth projection for India to 9.7% for FY22 from 9.9%, the Asian Development Bank (ADB) on Wednesday retained its growth forecast for India at 10%.

"The Vice President also called for creating global hubs in manufacturing, agricultural exports, digital services, next-generation financial products, high-efficiency logistics, power, sharing economy and modern retail," the statement said.

“Referring to the significance of the services sector in the Indian economy, he said it is currently accounting for over 54% of the economy. With the ongoing vaccination drive, the services sector can expect to witness a revival," the statement added.

Prime Minister Narendra Modi recently announced India’s ambitious playbook to launch 100 trillion PM Gati Shakti Plan for an integrated infrastructure growth that will help reduce logistics costs and make the economy competitive.

The new scheme will also help break the silos between road, rail, air and waterways to reduce travel time, make manufacturing competitive, facilitate setting up future economic zones and creating employment opportunities.

India has been working for a reset of its logistics sector involving railways, highways, inland waterways and airports to put in place an effective transportation grid. This comes against the backdrop of logistics comprising about 13% of total costs for Indian companies, making exports uncompetitive vis-a-vis China. The Indian logistics sector is expected to grow to $360 billion by 2032.

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