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Promoting Stronger Collaboration Between Government and Private Sector for India's Global Ascent

March 11, 2024 | 2 min read | Industry News

To elevate India to a global superpower, there is an imperative need for enhanced collaboration between business, technology, and foreign policy. Leading industrial figures emphasize the necessity for substantial private sector investment, ambitious goals, and unwavering self-confidence to achieve this vision.

Highlighting India's vast potential on the global stage, a prominent business leader recently emphasized the importance of fostering synergy between government and industry. Addressing the fourth annual Atal Bihari Vajpayee Memorial Lecture in Delhi on March 10, 2024, the speaker advocated for collaborative efforts in three key areas: scalability, innovation, and international expansion.

The Indian government has been rigorously pursuing its growth agenda, aiming to transition the country into a global powerhouse and attain developed-nation status by 2047. Initiatives such as Make in India, Digital India, and production-linked incentive (PLI) schemes have been introduced to catalyze both domestic and international growth. Currently encompassing approximately 14 sectors, including automobiles, electronics, pharmaceuticals, solar energy, batteries, and white goods, the PLI scheme aims to significantly bolster domestic manufacturing.

Recognizing the potential of the PLI scheme, industry leaders have called for its expansion to cover a broader spectrum of industries. The emphasis lies not in protectionism but in supportive measures over a defined period. There is a consensus on the need for a more favorable cost structure and improvements in the logistics model to enhance industry competitiveness. The National Logistics Policy aims to reduce logistics costs to 8-10% of the Gross Domestic Product, aligning India with global standards and optimizing supply chain costs.

On the investment and development front, there is a recognized need for increased spending. Comparatively, India allocates less than 1% of its GDP to research and development, lagging behind countries like the US and China. The speaker highlighted the importance of government funding for universities and research institutions to foster groundbreaking innovations.

Promoting 'Made in India' on a global scale is pivotal for leveraging India's manufacturing prowess. The emphasis is on bolstering marketing efforts, participating in international trade shows, and increasing engagement in global forums to enhance the global recognition of Indian products. Events like the Bharat Mobility Global Expo 2024 aim to position India as a leading global mobility hub, with the government projecting India to be the world's largest electric vehicle market by 2030.

To extend India's global footprint, there is a proposal to integrate business initiatives into foreign policy and align international aid with Indian industry requirements. This strategic approach can open new avenues for Indian companies in untapped international markets.

Furthermore, there is a pressing need for regulatory reforms to support innovators rather than creating bureaucratic hurdles. The industry has expressed concerns about navigating the intricate web of existing regulations, urging for a more streamlined and supportive regulatory environment.

In conclusion, industry leaders believe that a shift in mindset is essential. Overcoming the 'post-colonial subservience disorder' and embracing a more risk-positive approach are crucial steps towards fostering private sector investment and achieving sustainable growth.

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