I am still trying to figure out what Aatmanirbhar means: D Subbarao

Addressing the Times Network India Economic Conclave, Subba Rao said that India must focus on exports to achieve over 9 per cent growth in the coming years.

New Delhi: Aatmanirbhar Bharat campaign launched by the Central Government amid the Covid-19 pandemic lacks conceptual clarity, says former RBI Governor D Subbarao.

Addressing the 'Times Network India Economic Conclave' virtually on Thursday, Subbarao said: “We are still trying to decipher what Aatmanirbhar is,” as it is a combination of fiscal stimulus, reform intentions and policy slogans.

On being asked whether Aatmanirbhar Bharat Abhiyan will deliver the goods for India in the next decade, Subbarao said it all depends on what the government wants to achieve through this campaign.

“If it (Aatmanirbhar) means self-sufficiency, it’s a big no; if it means self-reliance and self-confidence, it’s a yes,” says the eminent economist.

Further explaining his statement, Subbarao said that we don’t want to go back to self-reliance or import substitution models. What we need to look at is our self-reliance and self-confidence.

“Having the self-confidence that India can grow and become an economic engine is good,” he observed.

As the supply chains across the globe were disrupted due to Covid-19-induced lockdowns and trade restrictions, the Narendra Modi-led government spotted an opportunity for the Indian economy and announced the Aatmanirbhar Bharat Abhiyan last May to give a boost to the domestic manufacturing sector.

According to official data, so far, nearly Rs 30 lakh crore was allocated for Covid-19 relief and fiscal stimulus measures as part of Aatmnirbhar Bharat Abhiyan.

India must focus on exports

Stressing the need for improving exports, Subba Rao said: “No emerging economy has clocked 7 per cent plus growth without exports…For India to clock 9 per cent growth and to deliver on Aatmanirbhar Bharat we need to grow our exports,” while adding, “Even India’s growth story between 2005 to 2008 came on the back of exports.”

Clearing the air on the possible adverse impact of protectionism on India’s export potential, he said India has huge growth potential despite these challenges.

“There is a lot of export pessimism because of Trump tariffs, because of the pandemic....but you must remember that the global export market is USD 80 trillion dollars, and India’s share is only 1.8 per cent.”

“So even in a scenario, when the export market might be shrinking, even its not clear that it is shrinking, I believe India still has a comparative advantage to produce not only for the domestic market but also for the global markets,” he concluded.

(Shravan Nune)