India needs to focus on attracting mid-tech foreign direct investment (FDI) for job creation as all large economies are focusing on hi-tech FDI, and they have enough resources to allow them to provide subsidies, leading economists concurred on Wednesday in a panel discussion at the Business Standard post-Budget summit in Mumbai.
The panel consisted of JP Morgan Chief India Economist Sajjid Z Chinoy, Citigroup India Chief Economist Samiran Chakraborty, HSBC Chief India Economist Pranjul Bhandari, and YES Bank Chief Economist Indranil Pan.
In response to a question on whether the government has taken an appropriate approach in prioritising job creation as a major macroeconomic objective, Bhandari said in order to take advantage of the alignment of the global value chains, India needed to move towards to mid-tech FDI over the medium term in sectors such as textiles, toys, handbags, and small electrical equipment.
"Twenty-five to 30 per cent of global capital last year went to the United States (US) in hi-tech, which the US has been subsiding for the past few years. In order to focus on midtech, we need policy certainty and low and stable import tariffs, and announce publicly we will keep our import tariffs stable over the medium term," she added.
She added India needed to sign "deep" free-trade agreements (FTAs), particularly with large countries and trading blocs, and simplify norms under programmes such as the productionlinked incentive (PLI) scheme.
Besides, she concurred with the assessment that the private sector needed to create jobs as stressed by the Union Budget.
"The job-creation challenge is so large that all have to do their bit. Eighty per cent of investment is done by the private sector. In a way, they are the ones who need to create jobs and I am not surprised the role of the private sector was discussed in this Budget as well," she added.
This story is from the August 01, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 01, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Avoid partial payout: Buy health cover with fewer sub-limits
At a recent Confederation of Indian Industry (CII) summit, Satyajit Tripathi, member (distribution), Insurance Regulatory and Development Authority of India (Irdai), highlighted that grievances in general insurance, especially health insurance, mainly revolve around claim payments.
'Largecaps appear reasonably valued'
Investors entering equities should come in with a long-term horizon to ensure short-term fluctuations amid high valuations do not derail the wealth generation, says DEEPAK SHENOY, chief executive officer and founder of Capitalmind.
Sustained FPI activity lifts Sensex, Nifty
Equity benchmark index Sensex rebounded nearly 100 points to hit a lifetime closing high on Monday and Nifty scaled an intraday record level, propelled by bargain hunting in energy, utility and banking stocks amid sustained foreign fund inflows.
Investors may book partial profit: Brokerages
Analysts on Monday attributed the blockbuster debut of Bajaj Housing Finance Ltd (BHFL) on the bourses to its strong fundamentals and the brand 'Bajaj', and said it could emerge as a long-term wealth creator.
Interest, trust of investors humbling: Sanjiv Bajaj
Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, on Monday said he expected 12-15 per cent credit growth in the housing finance industry, amid the strong tailwinds in the economy.
Trent may replace Bajaj Finserv in Sensexrejig in December
Bajaj Housing Finance Ltd's impressive stock market debut has brought cheer to the 100year-old Bajaj Group, but the conglomerate faces the prospect of Bajaj Finserv being removed from the benchmark Sensex index.
Sebi withdraws earlier statement on staff unrest
The Securities and Exchange Board of India (Sebi) on Monday said it was amicably addressing the concerns of its protesting employees on \"internal\" matters, as it withdrew an earlier press release that claimed that its staff's complaints were influenced by external elements.
The clash of 'will'power: The jury is still out
Following courtroom drama, experts analyse which one will dominate legal proceedings
FIRST LINE OF DEFENCE
Why New Delhi is underlining the role of border villages as custodians of India's frontiers
A fine balance
Markets in agriculture must be allowed to function
