New Delhi, Oct 21 (Mayank Nigam) Niti Aayog Vice Chairman Rajiv Kumar on Thursday said that India will achieve 10.5% growth or more in the current fiscal despite certain supply constraints which he described as “chips, ships and global trips.” Automobile and white goods sectors have seen impact on production due to semiconductor chip shortage. There has also been container shortage resulting in a surge in ocean freight charges across almost all trade routes. Speaking at an event organised by Public Affairs Forum of India (PAFI), Niti Aayog Vice Chairman noted that the unevenness in demand across various parts of the country is not because of a lack of consumer confidence which has come up in a significant manner but because of certain supply constraints. He described these constraints as “chips, ships and global trips,” which have constrained India’s growth recovery. “My own assessment is that we are in the last leg of the W-shaped recovery—going up after first phase of the Covid-19 was over but then going down again with the onset of the second wave,” Kumar said.
Talking about production-linked incentive (PLI), the Niti Vice Chairman said that the scheme is directed at helping Indian companies achieve global competitiveness. “The government has shown that it is willing to put its money where its policies are to incentive companies to play a bigger role in bringing frontline technologies and global scale. Not just that the redefining of the MSMEs is to make them a part of the regional and global manufacturing network,” he said. He also emphasised the need to diversify India’s export basket into non-petroleum and agro products. He advocated the need to get better market access in the European Union and the US. India, he added, should not just focus on merchandise exports but also on services export which is the country’s strength.