Chief Economic Advisor (CEA) Krishnamurthy Subramanian has said that the ongoing tariff war between the US and China will not have any impact on India’s export which is just below 2 percent of the global trade. He said 'Our exports share is still very small. Our share of global export trade itself is about 2 percent. Therefore, we still have an enormous opportunity to grow. Even if there is actually some shrinkage in the pie of the global trade, still we can grow our pie.'
Subramanian further stated that a raft of measures announced by the government including the rollback of enhanced super-rich tax on foreign and domestic equity investors for the revival of muted growth in the economy was in the right direction. Therefore, he said that there is need to focus on economic growth along with the structural reforms. He also said that the government would do all that is needed for economic growth. He added that investment is a key driver of the economic growth while consumption is a force multiplier.
Besides, on the proposed Rs 70,000-crore capital infusion by the government in public sector banks, CEA said 'I think this Rs 70,000 crore that has been announced for the recapitalisation of banks is quite important because the financial sector matters a lot for economic growth. Credit is basically the lifeline for economic growth. Therefore that is something which actually is important.'