A recent roundtable discussion organized by CUTS International featured Dr. Montek Singh Ahluwalia, former Deputy Chairman of the Planning Commission, who urged for a sharper focus on India's industrial and innovation policies. The event, the final in a series of roundtables, centered on "India 2047: Future Scenarios" and took place last week in New Delhi.
Dr. Ahluwalia challenged participants to critically examine India's existing industrial and innovation policies. He specifically questioned whether current incentives, such as the Production-Linked Incentive (PLI) scheme, are effectively encouraging private sector investment in Research and Development (R&D). This is a crucial point, as sustained economic growth and global competitiveness increasingly rely on technological advancements and innovation.
Furthermore, Dr. Ahluwalia highlighted the fiscal implications of an expanding regulatory environment. He advocated for granting states greater policy flexibility, enabling them to address regional disparities through tailored solutions. This suggests a move towards a more decentralized approach, recognizing that a one-size-fits-all policy may not be suitable for a country as diverse as India.
The roundtable was moderated by Pradeep S. Mehta, Secretary-General of CUTS International. He noted the participation of high-level and mid-level experts in the three meetings to capture both experience and aspirations. Mehta also pointed out the current global landscape defined by a "polycrisis" encompassing climate and biodiversity emergencies, geopolitical rivalries, and shifting alliances. This backdrop underscores the importance of a well-defined and adaptable industrial and innovation policy for India to navigate these challenges effectively.
The discussions held during the roundtable were based on draft research papers provided by CUTS International since October 2024. Dr. Ahluwalia commended CUTS International for this initiative, emphasizing that the intensive debate would contribute to a clear and actionable roadmap for India's centenary year.
In a broader context, Dr. Ahluwalia has previously emphasized the need for India to invest in infrastructure, particularly in the public sector, and to boost research in both industry and agriculture. He also stressed the importance of delivering public goods like health and education and advocated for expanding trade ties with countries in the East, including joining Regional Trade Agreements (RTAs) like the CPTPP.
CUTS International has been actively involved in facilitating discussions on India's trade and economic policies. In October 2022, the organization hosted a roundtable on "The Trade Policy India Needs," featuring Dr. Ahluwalia and other prominent figures. The discussions centered on the need for a robust foreign trade policy that aligns with industrial, competition, investment, and innovation policies.
Dr. Ahluwalia has also spoken about the importance of a clear tariff policy, supported by an exchange rate policy, to facilitate greater trade. He acknowledged Free Trade Agreements (FTAs) as tools to enhance market access and stimulate domestic reforms and suggested that India should be open to deeper integration in newer FTAs.
