More sectors to get production incentives, says NITI Aayog CEO
Rajiv Kumar, vice chairman of NITI Aayog, was speaking at a virtual conference on ‘achieving sustainable growth in a turbulent and disruptive global market’ organized by the Confederation of Asia-Pacific Chambers of Commerce and Industry and the Federation of Indian Chambers of Commerce & Industry.Updated: Oct 31, 2020, 06:01 IST
The government will offer incentives for manufacturing in more sectors, but tariff protections offered to encourage local producers will only be for a limited period, said Rajiv Kumar, vice chairman of federal policy think tank NITI Aayog.
He said the measures meant to support economic recovery will be done respecting international rules, addressing fears that nations are turning more inward-looking as they nurse the deep wounds left by the pandemic.
“If any support is given to domestic enterprises, it will be targeted towards getting globally competitive capacities, and any support given to them through tariffs would have an in-built sunset clause. I want to emphasize on India’s commitment to an open order and a global economy,” he said.
Policymakers are currently focusing on improving self-sufficiency in many areas of the economy. This is being done while the Indian economy stays open and respects a “rule-bound multilateral order” and “it does not imply, in any sense, any form of isolation, closed economy or protectionism”, said Kumar.
He was speaking at a virtual conference on ‘achieving sustainable growth in a turbulent and disruptive global market’ organized by the Confederation of Asia-Pacific Chambers of Commerce and Industry and the Federation of Indian Chambers of Commerce & Industry.
The idea, he said, is to encourage investors to put up globally comparable capacities in scale and competitiveness.