New Delhi, October 21 (UNI), UNI Vice President Rajiv Kumar on Thursday said India will achieve growth of 10.5% or more in the current fiscal year despite some supply constraints which he called “chips, ships and world journeys”.
The automotive and white goods sectors have suffered an impact on production due to the shortage of semiconductor chips. There has also been a shortage of containers, which has resulted in increased sea freight charges on almost all trade routes.
Speaking at an event organized by the Public Affairs Forum of India (PAFI), Vice President of Niti Aayog noted that the inequality of demand in various parts of the country is not due to a lack of consumer confidence that manifested itself significantly, but to certain supply constraints.
He described these constraints as “chips, ships and global travel”, which have hampered India’s resumption of growth.
“My own assessment is that we are in the last stage of the W-shaped recovery – going up after the first phase of Covid-19 ends, then coming down again with the onset of the second wave,” Kumar said.
Speaking about the production linked incentive (PLI), the vice president of Niti said that the program aims to help Indian companies achieve global competitiveness.
“The government has shown that it is ready to put its money where its policies are to get businesses to play a bigger role in bringing front-line and global technology. and a global manufacturing network, ”he said.
He also stressed the need to diversify India’s export basket towards non-oil and agro-food products. He pleaded for better access to the markets of the European Union and the United States.
India, he added, should not only focus on exports of goods but also on exports of services which are the strength of the country.