The commerce minister recently said that the recent economic slowdown is a cyclic structural adjustment and this is the appropriate time to invest in India before growth bounces back.
The minister admitted that country’s GDP has slowed down in past two quarters to 5 percent which is lowest of six years. He also said that India is no longer the fastest growing major economy.
At the India Energy Forum in New Delhi, Piyush Goyal said – “India, being an economy with huge opportunities, could do well without this kind of a slowdown. Our economy is like any other economy in the world…challenges have grown (in recent times). We had a pretty good run for almost 4-5 years before the last two quarters. It (the slowdown) is rightsizing of certain sectors or opportunities in different areas.”
The commerce minister acknowledges the slowdown but is not unduly anxious about it. Rather he considers it as an opportunity for everyone to reassess and reprioritize capacities, productivity and costs of production.
Considering it as the best time for investment, the minister appeals the investors to come forward and direct their funds in the country before this slowdown bounces back.
The leader explained the government’s efforts to boost economy and asserted that India has witnessed investments worth two and half times than it was five years back.
Highlighting the status of different sectors of economy, Piyush Goyal said that the Indian Railways would focus om a US$700 billion investment programme in coming 12 years. The objective lies behind it to make India an engine of growth and cut down logistics cost impacting all industries in the nation.
A US$1.4 trillion investment can be seen in infrastructure sector in next five years driving the growth of the industry. With a potential of $60-70-investment potential in the country, the energy sector has a big role to serve. According to the minister – “If energy becomes the viable proposition, then the chemical and petrochemical sector, together, can truly drive back growth into the economy. My own sense is that the energy sector is at the cusp of a revolution in the country.”
The country is looking forward to engage with modern technology to enhance efficiency of domestic production specifically in gas.
The commerce minister explained that PM Narendra Modi has dropped the bombshell of 450 GW of renewable energy target including solar energy, nuclear energy, wind energy and gas in some context.
Referring to FDI (Foreign Direct Investment), he said that India has provided a platform to almost all the sectors. Few exceptions do exist in FDIs when it comes to security or national policy concerns. Notably, 100 percent FDI is allowed in energy sector.