(Continued from post 1)
6. Role of digital and physical
The shift to digital during COVID from physical will have a lasting impact in the post COVID times in terms of consumer behaviour. As industry find new business models, the role of Science and Technology becomes important. This tilt in favour of the digital, also has the potential to widen the rural versus urban divide. The rural population is less skilled to participate in an economy with higher digital component and bringing digital skills to rural India is key to enhance rural jobs. The bright side is that connectivity to hinterlands through the telecom and digital services is growing significantly and this can be built upon to work on a more inclusive agenda.
7. Future of jobs and social security
The post COVID world is likely to see some transformational changes in the context of jobs in the typical sense.
CII will work closely with Government to provide incentives and facilitation to companies wanting to shift their manufacturing operations out of China as part of their de-risking strategy. This will help India develop as manufacturing hub for the world. In addition, front loading of the National Infrastructure pipeline will not only create demand for industries like steel and cement but will also provide jobs. Government’ focus on enhancing agriculture infrastructure, linking farm produce to markets by APMC reforms will also help increase farm incomes and livelihoods.
8. Rural-urban re-balance
For the first time in India, reverse migration was experienced with migrant workers going back. Industry should be encouraged to set up operations in the rural hinterland. The reforms announced in the minerals and mining sector should be expedited as most mining projects are in rural areas. Similarly, development of agro based clusters could be expedited in rural areas. A vibrant rural industrial sector will also de-risk the impact of COVID on economic activities as spread of COVID is far less in rural areas.
Further, industry and government should make available amenities in terms of housing, education and healthcare for workers who chose to come to the cities to work.
9. Four levers for growth:
Out of the four engines of growth – consumption, investment, net exports and government spending, the economy has been primarily growing on government expenditure. This is not sustainable as the fiscal situation is under pressure. Hence, it is essential to re-start the other engines of the economy. Given demand uncertainties, private investment remains a challenge. Exports need a quantum jump and to achieve this integration with global and regional value chains is important besides being competitive.
In this scenario, CII will continuously deliberate on how the private sector can play a role in igniting the growth engines of private investments, exports and the forces of entrepreneurship.
10. Getting growth back is non-negotiable
Getting growth back is essential to protect as well as generate jobs and livelihoods. CII will work intensely and closely with all stakeholders to bring back investments. Government spending in public infrastructure and direct benefits cash transfers may help boost demand initially but we need to find ways to sustain demand particularly in such uncertain times when consumers tend to save and get risk averse. The need of the hour is for government and industry to work together to return to a sustainable growth path.
In addition to these challenges, Mr Kotak said that India will have new Governance Standards driven by a Digital world. Industry will have to work with its vendors, especially with MSMEs to ensure that progress is across the value chain. Hence, Industry has a major role to play along with the Government in bringing inclusive and sustainable growth back.
As alluded by the Hon’ble Prime Minister at the CII Annual Session, CII would work as a knowledge partner for the Government to build India for a new world after COVID, Mr Kotak said.
Referring to Prime Minister Modi’s clarion call at the CII AGM to accord importance to five “I”s namely intent, inclusion, investment, infrastructure and innovation, the new CII president said CII’s work through the course of the year, and beyond, will be guided by 10 lenses enumerated above and will be focused towards finding optimum solutions to the challenges that lie ahead.
New Delhi
4 June 2020