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Reducing import, increasing exports: How states are doing their bit for the economy.

Date: 09-08-2022
Subject: Reducing import, increasing exports: How states are doing their bit for the economy
Prime Minister Narendra Modi has asked states to focus on reducing imports and increasing exports by identifying opportunities. States have been urged to promote trade, tourism and technology through Indian missions. This is sound advice, considering recent improvements in India's export performance have come about through a better mapping of Indian districts with foreign markets.

Both FDI and remittances are driven by policymaking at the state level, which encourages entrepreneurship and migration. Technology has become the star attraction for FDI with infotech clusters cornering the biggest slice, and white collar migrants have kept remittances stable over the course of the pandemic.

Both trace back to education outcomes that GoI hopes to improve through the National Education Policy (NEP). States would do well to draw up a timeline for implementing the programme that sets out to improve productivity of the largest labour pool on the planet. India is not creating jobs to keep pace with its economic growth. States must accept their inadequacy in this area. Services-led growth is ultimately constrained by labour productivity. Mature economies derive a large part of their econo ..

Resource mobilisation for social infrastructure will be facilitated by improved collections of GST. The tax is yielding some of its promised efficiency gains, but it is quite some way away from delivering its full potential. Modi flagged this as another focus area for states, underlining its criticality in India's becoming a $5 trillion economy. The recent surge in GST collections should ease some of states' reservations over revenue elasticity and could lower barriers to its expansion and strea ..

Source Name:-Economic Times


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