India can be goods supplier for global south, says Harvard University’s Ricardo Hausmann

India can be goods supplier for global south, says Harvard University’s Ricardo Hausmann

New Delhi: India has the potential to become a supplier of goods for the global south if it addresses structural constraints that have held back goods production, said Ricardo Hausmann, founder of the Growth Lab at Harvard University.”India has a domestic market which resembles a median citizen of the world. So, India may be able to produce the right product at the right price point for countries in the global south that the north may not have an advantage in,” Hausmann told ET in an interview on the sidelines of the Confederation of Indian Industry’s Global Economic Policy Forum 2023.Hausmann, who is also Rafik Hariri professor of the practice of international political economy at Harvard Kennedy School, said India provided opportunity for companies to set up operations in the country, as it had a huge domestic market with a large supply of labour, especially engineers, at a time when the world needed both. He said India is better integrated than some of the Southeast Asian economies.”In Vietnam, the foreign sector got integrated globally, but didn’t integrate the rest of society so much. But things are much more integrated domestically in India,” Hausmann said, pointing out that India has created a different value chain process. On economic growth, he said if the country could sustain 7% growth for a decade, it would be the fastest rate of growth and enough to push the economy. “It’s very important that the country sustain that growth in a relatively stable manner. And it would be great to use part of that growth to bring down the debt to GDP ratio without cutting government spending,” said Hausmann.

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