India will have to rely on domestic growth drivers: CEA Nageswaran

New Delhi, Jan 31 (IANS) India's Chief Economic Advisor V. Anantha Nageswaran said on Friday that the country will have to rely on domestic growth drivers as "the era of globalisation, faster and larger movement of trade and goods and services is behind us".

Addressing a press conference after the tabling of the Economic Survey in the Parliament, the Chief Economic Adviser (CEA) said that the value of trade affected by new import restrictions was just $170 billion in 2014-2015, but has now risen to over $1.3 trillion as he emphasised that imports, exports, and investment flows are increasingly being seen through the lens of strategic competition.

This shift in global trade dynamics is expected to continue for a prolonged period, presenting a new reality that India will need to navigate carefully, he observed.

Nageswaran mentioned that India is on a steady growth path, while globalisation is slowing down. This change brings both challenges and new opportunities. To keep growing, India must focus on economic reforms and take advantage of its young workforce.

According to Nageswaran, India has to "raise its game" of domestic growth as the global context and contours for growth have changed.

He highlighted three levers of growth for India to realise its aspiration of ‘Viksit Bharat’ by 2047, the most important being deregulation to spur growth, the private sector’s role in nation-building, and energy transition aligned with India’s priorities.

"Deregulation is not only about ease of doing business, it is also a pathway to employment," the Chief Economic Advisor said.

He also said that bringing more area under irrigation and land pooling and giving farmers the freedom to sell to whoever and at whatever prices can unlock 1 per cent incremental growth in the agriculture sector.

The CEA emphasised India’s growing role as a significant player in global services, highlighting the country’s increasing influence in this sector.

However, he also pointed out that over the past 25-30 years, China has maintained a dominant presence, especially in high-tech and medium-tech industries.

He also underlined the need for public transport to play a bigger role in energy transition and energy demand going forward.