Why PM Modi’s address is historic
with continued participation in global markets and value chains will be the mantra going forward.
His call for promoting local products so that they become global brands and capture a share of international markets is timely. As new capacities are created locally, the support from the consumer will propel them to achieve global qualities and scale. The domestic market, though large and growing, is still not enough to afford global scales of production and economies of scale.
India’s software industry came of age and achieved global scales and competitiveness with the Y2K phenomenon, mentioned by the PM in his address. Duties on hardware imports were reduced and software companies were supported to achieve this breakthrough. Similarly, India’s readymade garments industry achieved its present scale and competitiveness only through catering to global demand. It should be evident by now that Indian consumers are a discerning lot who are acutely price and quality conscious.
The bold reforms emphasised by the PM in his address will help Indian firms to meet the demands of the local consumers while gaining share in global markets.
We should not lose sight of the fact that the challenge has just begun. There is a difficult road ahead of us with the global economy showing signs of a perilous downward slide which could well be as steep as in the Great Depression of the 1930s.
The pandemic’s full impact on the global and domestic economy is still not fully known. In the coming days, we have to constantly be on guard, looking out for emerging risks and opportunities, and responding with agility and focus on these emerging trends. We have started a paradigm shift, which will take us in the direction of becoming a global player by focusing on our strengths and rooting our policies in our own ground realities. We will thus actualise the PM’S call for converting this crisis into an opportunity.