Latest news with #AWorldinFlux
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Business Standard
5 days ago
- Business
- Business Standard
Growth must mean jobs, value addition and economic stability: Sitharaman
India's top economic priority is not just growth, but ensuring that growth is meaningful, inclusive and sustainable, Finance Minister Nirmala Sitharaman said on Saturday, as she laid out a comprehensive view of how the country must respond to a fast-changing global and domestic economic landscape. 'The topmost priority is growth,' she said. 'It's about jobs, value addition and the quality of the growth - what goes into GVA (gross value added) matters.' She said India must adapt dynamically to global shifts, while balancing domestic aspirations with fiscal prudence. 'We must define how this movement forward is going to take place - with India at the table,' she asserted. Sitharaman was speaking at the launch of A World in Flux: India's Economic Priorities, a new book honouring noted economist Shankar Acharya. The event, held at the India International Centre, brought together a host of senior policymakers and economists. The volume, published by Rupa Publications and co-edited by Professor Amita Batra and veteran journalist A K Bhattacharya, features essays on the shifting global order and its implications for India. A dynamic global puzzle Reflecting on the theme of the book, Sitharaman said the phrase A World in Flux aptly describes today's geopolitical and economic environment. 'Institutions that were once seen as stable and effective - particularly multilateral institutions - now appear to be in a state of limbo. Not just financial institutions, but strategic ones as well.' She urged India to remain agile and proactive in this evolving context. Using a vivid metaphor, she asked: 'Are you going to be a static piece or a dynamic one? And how do you keep redefining the contours of your piece so that you still fit in, even as the puzzle keeps changing?' India, she said, must go beyond just being a participant and take an active role in shaping global frameworks. 'It's not just about being present; we must define how this movement forward is going to take place - with India at the table.' Balancing ambition with responsibility At home, Sitharaman stressed the importance of aligning growth strategies with fiscal prudence and inclusive development. 'It's one thing to aspire to be at the table and to maintain growth, but fundamentally, we must support the economy at every level.' She argued that India's policy focus must be on building long-term systems, not just distributing short-term benefits. 'We need to attend to the aspirations of every section -- not just by giving money, but by building systems that enable them to grow.' This includes creating jobs to harness India's demographic advantage, and managing resources in a way that supports long-term economic stability. 'The challenge lies in aligning domestic aspirations with resource availability and ensuring that economic priorities evolve accordingly,' she said. Public investment as a growth engine Sitharaman underlined the government's continued focus on public capital expenditure to sustain economic momentum. 'The numbers are before you each year -- it's a clear instruction from the Prime Minister that capital expenditure must grow, and grow significantly,' she said. Calling this a cornerstone of India's growth model, she noted that public investment has increased consistently in recent years. 'This is one of the primary drivers of sustained economic growth,' she said, while also acknowledging that overall investment levels could still improve. Policy environment, private sector recovery The finance minister also spoke about efforts to improve the investment climate. 'The policy on FDI is made friendly and attractive enough to bring in more investments,' she said, adding that state governments are also actively competing to attract capital. 'Each one is doing its best—and the more successful ones are setting benchmarks for others to catch up.' She noted that the private sector has strengthened in recent years, especially after the resolution of the twin balance sheet problem and the 2019 corporate tax cuts. 'After Covid — and even starting from 2019 — you can see that the corporate sector is healthier.' According to her, industry players are now showing more interest in production-linked investments. 'There is a visible shift from just financial engagement to actual investment in production and expansion.' 'We are moving forward' Addressing the persistent concern around employment, Sitharaman admitted that job creation remains a challenge but struck a hopeful note. 'At least we are moving forward,' she said. In conclusion, her remarks painted a picture of an India that is not only adapting to global shifts but also taking steps to lead responsibly, ensuring that growth is equitable, job-creating and future-ready.
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Business Standard
5 days ago
- Business
- Business Standard
A World in Flux: India's Economic Priorities
At the launch of 'A World in Flux', Finance Minister Nirmala Sitharaman said multilateral institutions are now in limbo and stressed the urgent need to reshape them for today's rapidly evolving world
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Business Standard
5 days ago
- Business
- Business Standard
A World in Flux: Sitharaman flags need to reshape institutions for present
A new book titled 'A World in Flux: India's Economic Priorities' was launched on Saturday at the India International Centre, New Delhi. The festschrift honours economist Dr Shankar Acharya and was released in the presence of several leading economists and policymakers. Published by Rupa Publications, the book is co-edited by Professor Amita Batra of Jawaharlal Nehru University and veteran journalist A K Bhattacharya. It brings together essays by noted economists and policy experts, examining the evolving global context and its implications for India. Finance Minister reflects on global flux Union Finance Minister Nirmala Sitharaman, the chief guest at the event, addressed the audience with remarks on the rapidly changing global economic environment. 'The phrase 'A World in Flux' is indeed an apt description of the times we're living in,' she said, pointing to the growing uncertainties facing multilateral institutions. 'Institutions that were once seen as stable and effective - particularly multilateral institutions - now appear to be in a state of limbo. Not just financial institutions, but strategic ones as well.' Referring to India's G20 presidency, Sitharaman noted that these challenges had been central to India's Finance Track agenda. 'During the G20, we saw an opportunity to address the growing challenges in the global financial architecture,' she said. She highlighted the role of an expert committee that provided key recommendations during the presidency. These were well received by Brazil and are expected to be carried forward by South Africa. 'At that time, the committee's terms of reference seemed adequate. But with hindsight, perhaps those terms could have been even broader, given the complexity of today's world. The flux we're experiencing isn't abstract - it's real, visible, and accelerating.' Sitharaman emphasised that these changes are not limited to institutions and experts, but are being felt by ordinary people. 'We're seeing an increasingly complex global financial environment. The challenge is not only for India, but for the world: how do we shape institutions that are relevant for today and tomorrow?' she said, adding that currency frameworks themselves are now evolving rapidly. Amita Batra on the book's relevance Speaking at the launch, Professor Amita Batra remarked on the book's origins and growing relevance. 'At the time we began work on it, global institutions, economic frameworks, foreign and trade policy instruments were already being used in new and different ways.' She explained that while the title A World in Flux was an intuitive choice then, its relevance has only increased. 'The global context today continues to be uncertain. The world economy is increasingly shaped by trade protectionism, state intervention, and industrial policy,' she said. These shifts, she added, raise important questions about the relevance of the old multilateral order and the possible need for a new one. 'If so, what should its parameters be?' she asked. The book, she noted, seeks to explore how these global dynamics are reshaping India's development priorities and the opportunities they present. 'With that framework in hand, we worked to bring together contributors who had not only deep expertise in these areas but also a professional association with Dr Shankar Acharya,' she said. Panel discussion features leading economic voices The event featured a panel discussion with several distinguished speakers, including: The discussion offered an opportunity to reflect on India's shifting economic landscape, with a focus on policy priorities amid an increasingly uncertain global order.
