'Atmanirbhar Bharat' Not Isolationism Or Protectionism: Finance Minister

'Atmanirbhar Bharat' or the policy of self-reliance is neither "isolationism" nor "protectionism" but is a recognition of the fact that India must raise its manufacturing share of GDP, Finance Minister Nirmala Sitharaman said in Washington on Tuesday.

Addressing a gathering at the prestigious Brookings Institute think-tank, Ms Sitharaman said India has not de-industrialised prematurely. It did not industrialise enough because infrastructure and connectivity that enable industrialisation of hinterland was lacking.

"That is what we have addressed in the last eight years," she said in reference to the ambitious 'Atmanirbhar Bharat' project of the Modi government.

Ms Sitharaman said 'Atmanirbhar Bharat' "is misunderstood as isolationism or protectionism. It is neither. It is a recognition of the fact that India must raise its manufacturing share of GDP for it generates employment both for the skilled and semiskilled".

The policy, she said, boosts the construction sector that provides incomes for the unskilled too.

Roads and highway construction have been ramped up. Ports and rail network have been strengthened. The ramping up of the government's capital expenditure was meant to provide the infrastructure platform for the private sector to create global manufacturing capacity, the minister said.

On global supply chain, the minister said, "Global growth and trade are interconnected. For trade to support the growth in the new world order, we need goods and service supply chains to run inevitably across borders." Ms Sitharaman said the Production-Linked Incentive (PLI) Scheme is about creating global capacity locally.

"It seeks to plug India into the global value chain while providing a measure of supply-chain resilience to us," she said.

"To brighten the economic prospect, our visionary Prime Minister Shri Narendra Modi has already announced the 'T-3 formula' to improve global supply chains. This T-3 includes 'Trusted Source', 'Transparency' and 'Time-Frame'. Trusted sources are important for our collective safety and reliability. Transparency, mutual trust and understanding promotes trade and investment," Ms Sitharaman said.

In her prepared remarks, Ms Sitharaman quoted Guyana's Foreign Minister Hugh Hilton Todd: "India Is a multilateral institution in its own right when it comes to its commitment to humanity... It is not just the fifth largest economy in the world but it is the largest economy in terms of its heart, compassion, humanity and putting lives ahead of profits." India as a developing nation has always stood ahead for the growth of the global commons, she said.

"India's commitment to multilateralism is evident by the initiatives we have taken to supply vaccines to over 100 nations, provide disaster relief to those in distress, and partner with other countries, with a focus on green growth, better connectivity, digital delivery and accessible health," Ms Sitharaman said.

At the current critical juncture in the world, India continues to affirm its commitment to "multilateral diplomacy and the need for international cooperation", she said.

Ms Sitharaman arrived here earlier in the day to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank. The finance minister during her five-day visit will also hold a bilateral meeting with US Treasury Secretary Janet Yellen.
 

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