“We need to quickly diversify our supply chains. Well functioning international markets with resilient and efficient supply chains are the ones that can help us sustain our growth. We need to cushion ourselves sufficiently against any shock that can happen,” the FM said during her address at the B20 India 2023 meet in New Delhi.
“It’s an old wisdom that putting all eggs in one basket is not enough. Thus, for ensuring global stability, we need to have diversified supply chains,” she added.
Negating the notion that Aatmanirbhar Bharat is against globalisation, she added that the ambitious plan is more about enhancing India’s inherent resilience, and making sure that each sector of the economy grows robustly. “So, if some essential imports have to come in, we are not going to stop that,” she said.
Outlining her priorities, she further said that taming inflation would be her key focus area. ” Key priority for economic growth is stemming inflation, because persistently high inflation, coupled with elevated interest rates, for a considerable time can come in the way of economic recovery. So, the tendency to use interest rates as the only solution for dealing with inflation has its own downside. Most economies do have this problem… and I think the obsession with using interest rates as the only tool to deal with inflation and not manage the supply side factors will not give a complete solution on inflation.” The FM was addressing the audience at a B20’s Special Plenary Session on ‘Key Priorities for Sustained Global Economic Recovery’. The theme of B20SummitIndia is R.A.I.S.E – Responsible, Accelerated, Innovative, Sustainable and Equitable Businesses.
