Geo-political tensions to hit exports : PM’s Principal Secretary

BHUBANESWAR : Export-led growth will not be very easy now as the global situation has changed due to Covid and geo-political tension, said Pramod Kumar Mishra, Principal Secretary to Prime Minister Shri Narendra Modi, while attending a conference at Sambalpur University on Saturday.

Speaking at the 56th annual conference of the Odisha Economic Association (OEA), Mishra said govts are now pursuing onshoring and friend-shoring of production with consequent impact on transportation, logistics and cost increasing the final price of products.He said recent incidents in the Red Sea have also caused concern for reliance on global supply chains, thereby aggravating the slower growth in global trade.

“Consequently, export-led growth will not be very easy. There is a need to lower logistics cost and invest and improve the quality of product to hold on and expand the market. This is one source of uncertainty of the global supply chain disruption and geopolitical tension,” he added.

He spoke on the pathways for sustainable growth in an uncertain world. He said global uncertainties have arisen from three sources — geopolitical uncertainty, technology and innovation such as AI-driven uncertainty and environmental concerns or energy transition-related uncertainties.

He said amid global uncertainties, Indian economy remains a major performer. “To achieve sustainable development, one should focus on economic growth that ensures an equal society and makes the world a safer place,” he added.

India is focussing on becoming Atma Nirbhar that goes beyond self-sufficiency and focuses on production for the world. “To address the environmental concerns, India has taken initiatives like Lifestyle for Environment (LiFE), Solar Alliance and coalition for disaster resilient infrastructure (CDRI). Other countries should join hands in these initiatives,” he added.

In the last two Budgets, Centre has taken a number of steps to address environment concerns. “To boost economic growth, it is investing a higher percentage of the budget on infrastructure through PM Gati Shakti. India has adopted logistics policy, production-linked incentives, signed more free trade agreements,” said Mishra.

Pramod Kumar Mishra, principal secretary to PM Narendra Modi, addressed the Odisha Economic Association conference. He discussed the challenges to export-led growth due to Covid and geopolitical tension. Mishra emphasized the need to lower logistics cost, improve product quality, and address global uncertainties. He highlighted India’s focus on Atma Nirbhar and initiatives like LiFE, Solar Alliance, and CDRI.

EAM S Jaishankar emphasized the importance of trust, transparency, and dispersing production across geographies to mitigate risks. He mentioned the challenges in the Indian Ocean, including piracy, climate change, and the need for resilience in addressing disruptive events and distant crises like fuel, food, and fertilizer shortages.

India is expected to surpass China as the largest driver of global oil demand growth by 2030, according to the International Energy Agency (IEA). India’s oil demand is projected to increase by 1.2 million bpd, accounting for one-third of global gains.