India must prepare for greater responsibilities’: Niti Aayog

“We have been thinking of ourselves as a small, open economy, which economists see as distinct from a systemically important economy, which we have now gradually become. The behaviour and leadership expected from a systemically important economy are different from those of a small, open economy,” NITI Aayog Vice-Chairperson Suman Bery said while addressing an event organised by the Confederation of Indian Industry.

Bery said “We are seeing this in our interactions with the US administration – more will be asked of us, and we should be ready for that. The Trump administration pushing New Delhi to substantially reduce tariff and non-tariff barriers.”

Echoing a growing sentiment from the top authorities of the government, he expressed disappointment over India Inc’s reluctance to invest substantially in the economy, asserting that the country cannot grow at 7-8 per cent without the corporate sector’s full partnership.”

“Going back to the reduction in corporate tax, the idea was to give resources back to the sector, and they would deploy them in investment and R&D. Unfortunately, we have not seen the proof of that till now.”

As the finance minister said, we can’t force private enterprises as they have responsibilities to stakeholders, but there is disappointment that in the fastest-growing economy in the world, members of CII (industry bodies) are still sitting on their hands, citing the threat from China and now the US,” Bery said.

“On creating a Mittelstand, (small or medium sized companies and family businesses) we have miles to go to keep up with China.

The Niti Aayog, according to officials, is working on a policy to provide special incentives for medium enterprises to shed their inhibitions about becoming large firms and be integrated into global value chains more meaningfully.

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