Investments In R&D Needed To Become $5 Trn Economy: Additional Secy, Commerce Department

Investments in research and development space can help India leverage these opportunities and achieve its goal of becoming a USD 5 trillion economy, said Rajesh Agrawal, Additional Secretary, Department of Commerce on Wednesday.

While speaking at an event organised by the PHD Chamber of Commerce and Industry (PHDCCI), Agrawal emphasised the importance of global value chains (GVCs) for businesses and how they are essential for companies to become competitive, cost-effective, and efficient.

He further explained that as India aims to become a major player in GVCs, the country must diversify its supply chains to minimise risk and maintain continuity, especially during times of disruption. 

Agrawal encouraged businesses and the government to work together to make India a major player in GVCs and to seize the opportunities presented by diversification and supply chain security.

Agrawal also spoke about the geopolitical scenario and how it has led to a debate on de-risking from a geopolitical point of view. 

He emphasised the need for India to tread carefully in this area and to focus on securing critical supply chains such as health, food security, and energy.

The additional secretary highlighted India's unique advantages in becoming a major player in GVCs, including its young and skilled workforce, favourable labour costs, and strategic location in the Indian Ocean and Pacific. 

He also stated that India has a lot to offer as a pharmacy to the world and as a food basket.

However, Agrawal noted that India needs to address some basic teething issues, such as maintaining quality standards, to leverage the opportunities offered by GVCs fully. 

He urged the industry and government to work together to skill the labour pool and make them productive to attract more companies to India.