Chief Economic Adviser V. Anantha Nageswaran on Tuesday asked automobile manufacturers to invest in R&D to create a world-class industry.
Speaking at the SIAM Annual Convention, he also asked them to focus on improving the global NCAP (New Car Assessment Program) ratings of their products so that exports receive a further boost.
Overall, he said, the Indian private sector contributes about one-third of the economy’s total R&D spending, while the remaining two-thirds comes from the government.
“Once again, our studies show that it is not due to a lack of government support for R&D spending in general, but also depends on our ability to think over a much longer horizon… seeing R&D spending as an investment, rather than as an expense against the bottom line,” he said.
Furthermore, he said, carmakers should not view public mobility as a form of competition, but rather as a complement.
Talking about the Indian economy, Nageswaran said it is doing quite well amid global uncertainty.
“Thanks to strong corporate and financial sector balance sheets, and thanks to massive supply-side infrastructure investments over the last 8-10 years… our potential growth of the economy is somewhere between 6.5-7 percent and if we sustain some more reforms, especially at the state and local government level, then it is possible for us to raise this number to somewhere between 7-7.5 percent,” he said.
Sustainably moving toward 8 percent would also require the global economy to grow well, he said.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 10, 2024 | 21:50 IS
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