Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday underlined five positive shifts that are underway which will shape the future of Indian economy.
Addressing the members of the Confederation of Indian Industries (CII), he said these major dynamic shifts must be "converted into structural transformations" which will affect "sizeable benefits for economy".
In an online session conducted by the industry body, Das emphasised five areas where India can leverage its strengths and position itself as a leader in the global scenario.
The five areas, Das pointed out, where these shifts are reflecting are the farm sector, global value chains, information and communication technology (ICT), renewable energy, and infrastructure.
The RBI governor highlighted "the fortunes shifting in favour of the farm sector, the changing energy mix in favour of renewables, leveraging information and communication technology (ICT), and start-ups to power growth, shifts in supply and value chains, both domestic and global, and infrastructure as the force-multiplier for growth".
Das stated that both private and public sectors have to play an important role in developing infrastructure that requires huge investments
Meanwhile, the governor lauded the government for bringing in reforms in the agriculture sector that will boost farmers' income and will also add value to the economy. Das also talked about the main challenge before the Indian agriculture sector which is surplus management rather than self-sufficiency.
Talking about renewable energy, he said that India has done a good job in ramping up installed capacity over the last five years. He stated that the share of renewable energy in installed capacity has risen to 23.4 per cent at the end of March 2020 from 11.8 per cent in March 2015.
Das further enunciated that the shifts in energy mix will aid in increasing per capita energy consumption.
He also took note of global regulatory challenges such as the recent temporary work visa freeze by the Trump administration on India's ICT sector. Das suggested that India can leverage the rising shifts in global value chains and enhance its share in these value chains. The governor expressed that the fruition of bilateral trade deals with the US, UK, and EU can fortify India's position in global value chains.
Das also called for diversification in the financing of infrastructure projects in the country.