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India's Path to a $5 Trillion Economy: Insights from Piyush Goyal in UAE

Introduction

Shri Piyush Goyal, the Union Minister of Commerce and Industry, addressed the ICAI Dubai Chapter during his visit to the UAE, underscoring India's progress towards becoming a $5 trillion economy. He called on Chartered Accountants (CAs) to actively contribute to this mission by enhancing transparency and fostering deeper Indo-UAE ties.

India's Economic Growth and Ambitions

Shri Goyal highlighted that India is embarking on a path towards economic self-reliance (Aatmanirbhar) under the leadership of Prime Minister Narendra Modi. He noted significant growth indicators despite the challenges posed by the pandemic:

  • India’s merchandise exports reached $197.11 billion in the first half of FY2020-21 (April-September 2021), marking a 23.8% increase compared to the same period in 2019.
  • The Manufacturing Purchasing Managers’ Index (PMI) rose from an average of 51.5 in Q1 to 53.8 in Q2.
  • Goods and Services Tax (GST) collections peaked at a five-month high in September.

According to Shri Goyal, achieving a $5 trillion economy is an ambitious goal that requires the collective effort of every Indian. He emphasized various initiatives introduced by the Government, including:

  • Startup India
  • Production-Linked Incentive (PLI) Scheme
  • Single Window System
  • Industrial Corridors
  • National Infrastructure Pipeline
  • Corporate Tax Reduction
  • Abolishment of Retrospective Income Tax
  • Liberal Foreign Direct Investment (FDI) Policy

Promoting Financial Transparency and Literacy

Shri Goyal stressed the importance of enhancing transparency in the financial sector and bolstering initiatives like Digital India and Skill India to foster financial literacy, particularly among farmers and micro, small, and medium enterprises (MSMEs). He stated that these measures would help boost investor confidence in the Indian economy.

Strengthening India-UAE Relations

The minister pointed out that the Indian community, comprising approximately 3.4 million people or 30% of the UAE’s population, plays a crucial role in nurturing bilateral ties. He mentioned that the celebrations of India’s ‘Azadi Ka Amrut Mahotsav’ coincided with the UAE's ‘Year of 50,’ commemorating the nation’s unity since 1971. Recent advancements in the partnership include the launch of Comprehensive Economic Partnership Agreement (CEPA) negotiations.

Commendation of ICAI Dubai

Recognizing the ICAI Dubai Chapter as the largest and most active overseas chapter, Shri Goyal referred to Dubai as an extension of India's neighbourhood. He commended the chapter for its significant contributions, including the successful implementation of VAT in the UAE and its support during the COVID-19 pandemic through the supply of essential items.

The Role of Chartered Accountants in National Development

Shri Goyal urged CAs to elevate their focus beyond industry expectations and align with societal needs. He called upon them to act in “Mission Mode” to fulfil Prime Minister Modi’s vision of establishing globally competitive Indian audit firms. He encouraged CAs in Dubai to engage their clients from UAE business sectors to explore investment opportunities in India, highlighting the potential of the Indian market.

Conclusion

During this visit, Shri Goyal aimed to reinforce Indo-UAE strategic partnerships and elevate bilateral trade and investment. His engagements included meetings with prominent UAE officials and business leaders, marking a significant step in furthering economic collaboration between the two nations.