‘Difficult times ahead’: Vaishnaw warns of rougher global economy, says India gearing up
Vaishnaw also said geopolitics plays a major role, which means India must keep adjusting its approach.
Union minister Ashwini Vaishnaw cautioned that the global economy is set to enter a tougher period than in recent years, with India preparing for the anticipated challenges. He highlighted the potential impact of technology and finance disruptions, particularly through artificial intelligence (AI) and the potential unraveling of rich countries' debt.
Vaishnaw emphasized that geopolitical factors play a significant role, urging India to adapt its approach accordingly. The government's strategy is divided into three phases, addressing short-term (3-5 years), mid-term (5-15 years), and long-term (20-25 years) goals.
Vaishnaw pointed out that India is building an "India stack" while being mindful of risks associated with material dependence. The government has focused on semiconductors, with the second phase of the India Semiconductor Mission dedicated to materials like gases, substrates, and chemicals. He stressed the need to build from the ground up, as it takes time and cannot rely on global supply chains being in place.
Cybersecurity has become a top priority, with India aiming to establish itself as a trusted partner. The minister also highlighted India's progress in the mobile phone sector, moving from assembling to manufacturing components and even exporting them.
Vaishnaw stressed India's commitment to developing its semiconductor capabilities, using examples from chip design and the success of global companies operating in India for decades without significant issues. India's public debt has decreased from 61% of GDP to 55% over the past five years, with the goal of creating an economy that can withstand various shocks. Vaishnaw envisions India becoming a $4 trillion economy with a 6-8% annual growth rate, but acknowledged that external factors could hinder this growth trajectory.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
