Factor Reforms Essential for Viksit Bharat
Confederation of Indian Industry (CII) President R Mukundan has stressed that deep structural reforms in factors of production—power, land, logistics, and infrastructure—are critical for India to realize its 'Viksit Bharat' vision by 2047. In an interview with ANI in Mumbai, Mukundan outlined a multi-layered roadmap to elevate India's economy over the next two decades.
“Factor reforms require deep interventions in power, logistics, infrastructure, and land availability to support rapid industrial expansion,” Mukundan said. He emphasized that reducing friction in these areas directly lowers production costs and boosts competitiveness.
Proposed GST-Type Council for Reforms
To bypass federal bottlenecks and synchronize changes across states, Mukundan proposed a radical governance framework: a “GST-type Council” for cross-cutting subjects like agriculture and power. This would enable the Centre and states to collaboratively make quick decisions, modernizing production factors under a unified structural umbrella.
Free Trade Utilization Over FTAs
Shifting focus to international trade, Mukundan highlighted that signing Free Trade Agreements (FTAs) is only half the battle. The true differentiator lies in what he termed Free Trade Utilization (FTU). Using India's trade with South Korea as an example, he asked: “How do we promote Brand India? How do we reach out to South Korean customers? How do we get South Korean technology and investment back into India to ensure full utilization of these FTAs?”
MSMEs: Credit, Market Access, and Technology
Mukundan flagged market access, technology adaptation, and access to credit as major hurdles for Micro, Small, and Medium Enterprises (MSMEs). Delayed payments also continue to choke smaller businesses. The CII is working directly with financial institutions to optimize credit delivery and, through its Centres of Excellence, handholding smaller enterprises into smarter operations. “We want MSMEs to benefit from smart manufacturing... helping them transition into smart, energy-efficient, and water-efficient factories,” he explained.
AI as a Force Multiplier
As automation and digital tools rewrite industry playbooks, Mukundan pushed for a drastic overhaul in workforce training, praising the New Education Policy’s emphasis on vocational skilling. He framed Artificial Intelligence as a core asset rather than a threat: “AI will be a force multiplier. We have 1.4 billion people who need access to good healthcare, good education, and good services. AI can democratize access to high-quality solutions for every citizen.”
Emerging Manufacturing Windows
Amid shifting global dynamics, Mukundan identified massive emerging manufacturing windows for India in defense reconstruction, aerospace, and advanced electronics. To capture this capital, securing a trade bridge with the world’s largest economy remains paramount. On the US-India trade alignments, he stated: “Whatever trade terms are finalized, India’s exports to the US must receive terms and conditions that are better than, or at least equal to, our closest peer competitors. Nothing more.”
Equal Partners in Progress
Defining the relationship between the private sector and public policymakers, Mukundan underscored that a developed India cannot be built in isolation. “The citizens, the industry, and the government are all equal partners in progress. We must collaboratively focus on making India the most competitive place in the world to do business. By maintaining a steady, unrelenting path of economic reforms, we will confidently achieve the vision of a Viksit Bharat by 2047.”
