Need to blend commercial considerations with economic priorities, strategic needs: Sitharaman

Finance Minister Nirmala Sitharaman on Wednesday stressed that India Inc.'s commercial considerations should blend with the economy, nation's priorities and strategic needs.

Asking the industry to "realign and reset" itself based on the lessons learnt in the last decade, Sitharaman said the supply chains should be widespread lest geopolitical risks disrupt it.

"Economic and commercial considerations today will have to blend (with) economy and its priorities with politics and strategic needs," Sitharaman said at the CII Global Economic Policy Forum 2024 here.

Outlining the priorities of the economy for the next decade, Sitharaman said the industry should work with small and medium enterprises to explore how they can support large units, while equally contributing to job creation.

"When we talk about restoring supply chains to frictionless supply chains, let's not forget it's not just economics, it's more than that... We have to build in our decision-making not just in the economic sense but also in a political and strategic sense.

"Supply chains will have to be restored but you would have to reset it, realign it, you will have to make sure that it is spread so much that no geopolitical or strategic risks will threaten our wellbeing," Sitharaman said.

Learning from the last decade is that the country will have to now realign, and industry will have to realign itself not just on economic principles.

Sitharaman said the attempt of both industry and governments everywhere should be to restore global calm and normalcy. There can nowhere be enough justifiable reason for skirmishes or war, she said.

"The global priority for this decade should be to restore normalcy. They are the main cause for disruptions in supply chain, inflation and other global challenges," the Minister said.

Stating that the benefits of economic success will be spread properly only through technology. India's Digital Public Infrastructure (DPI), ONDC (Open Network for Digital Commerce) and technology stack for agriculture have democratised access.

"Farmers are now able to access the global markets due to the advantage of technology. I'm sure that 'Agri Stack' will be the next big thing you will hear coming out of India," she added.

"The world is facing challenges which are reflected in the economy," the Minister said.

The industry will have to look at ways to adapt to newer challenges, she said, adding scale cannot be the only criterion.

Addressing the session on decadal priorities of the global economy, Sitharaman said the government is super-conscious of the fact that it cannot burden the forthcoming generations with debt that is not sustainable.

"In this coming decade, the priority should be to manage finances and borrow for building assets, managing better, but it cannot be (that) such borrowing... leaves the next generation worried," she said.