'A small blip': India’s growth momentum holds steady, says Ashwini Vaishnaw at Davos

At the World Economic Forum in Davos, Union Railways Minister Ashwini Vaishnaw dismissed concerns about a slowdown in the second quarter of this fiscal year, underscoring India’s resilience and growth trajectory.

“There are three big levers in the economy—fiscal policy, monetary policy, and credit policy,” Vaishnaw stated. He pointed to the Reserve Bank of India’s restrictive stance on liquidity to curb inflation, prolonged monsoons, and election-related pauses in construction as temporary factors behind the slowdown. "I think this is just a small blip in the curve. We are definitely in the 6-8% growth band," he affirmed.

Highlighting India’s appeal to global companies, Vaishnaw said the country stands out due to its “frame of trust, talent, and design capabilities.” He credited Prime Minister Narendra Modi’s economic and foreign policies for making India a preferred destination for global investments, especially in semiconductors. “India is already among the top three destinations for semiconductors,” Vaishnaw added.

The minister emphasized the shift in mindset from import substitution to export-led growth. “Today, 99.1% of mobile phones used in India are manufactured locally. Now, we are focusing on making in India for the world,” he said, citing industries such as electronics, pharmaceuticals, and chemicals as examples.

Vaishnaw outlined India’s ambitious AI and skilling targets. “At least 1 million people will be trained in AI tools and skills. We’ve also set up 5G labs in 100 universities and equipped 240 universities with advanced semiconductor design tools,” he said. These initiatives aim to align academic curricula with industry requirements, creating a workforce ready for global demands.

India’s semiconductor progress was another point of pride. Vaishnaw noted that construction is in advanced stages at five semiconductor units, with the first chips expected to roll out this year. “This builds confidence in India’s technological base,” he said, mentioning that companies like INOX are partnering with Micron and Tata for materials.

Vaishnaw lauded the integration of Indian state pavilions at Davos, calling it “a unified India’s pavilion.” He attributed this vision to Prime Minister Modi, who advocated for a cohesive showcase of India’s potential to the world.