ACCELERATING COMPETITIVENESS: IMPERATIVE FOR GROWTH

India has emerged as a symbol of growth and resilience at a time when the global economy is navigating unprecedented challenges. Geopolitical tensions, economic fragmentation, increasing protectionism, and the weaponisation of trade are reshaping the contours of international commerce. At the same time, climate change, resource constraints, and technological disruptions are redefining growth models around the globe.

With a decadal growth rate exceeding 7 per cent, India is poised to become the world’s third-largest economy within a few years. However, to achieve its aspiration of becoming a Viksit Bharat by 2047, sustaining this growth over the long term is crucial. With strong macroeconomic fundamentals, reform-driven governance, and diverse industrial capabilities, India is on the verge of a transformative growth phase.

Yet, its future will not be defined by the pace of growth alone, but by its quality. In view of this, the Confederation of Indian Industry (CII) has adopted ‘Accelerating Competitiveness: Globalisation, Inclusivity, Sustainability, Trust’ as its theme for the year 2025-26. This theme underscores the imperatives that will define India’s journey to becoming a developed nation by 2047. This is not merely an economic strategy; it is a national imperative. India must lead not only in growth metrics but in shaping a future defined by competitiveness, inclusion, sustainability, and trust.

Competitiveness

 Competitiveness has become the defining factor for economies seeking to lead. Anchored in productivity, innovation, and operational efficiency, competitiveness determines how nations withstand disruptions, integrate with global markets, and deliver sustainable growth.

 India has set a clear vision for building robust manufacturing and technology capabilities, strengthening quality and standards, and expanding MSME capacity as key growth drivers. Ease of doing business reforms, rapid infrastructure development, and a facilitative regulatory environment are laying the foundation for entrepreneurship to flourish.

Artificial Intelligence has emerged as a transformative force. With its vast talent pool and growing digital infrastructure, India is primed to lead the global AI revolution. CII will build on its strong technology interventions to help Indian enterprises harness AI and other emerging technologies, driving innovation and productivity.

All sectors – agriculture & food processing, manufacturing, services, infrastructure, and energy – need to boost their competitiveness. Through its proactive policy advocacy with Central and State Governments, CII will continue to work on the next generation of structural reforms, focusing on reducing regulatory frictions, simplifying compliance, and tackling the real costs of doing business. CII’s Centres of Excellence will play a pivotal role in helping enterprises, large and small, enhance quality, adopt advanced technologies, and build future-ready capabilities.

Globalisation

The nature of globalisation is undergoing profound change. Regional conflicts, trade disruptions, and energy transition have accelerated the reconfiguration of global value chains, placing new pressures on traditional trade routes. Amid these shifts, India has a window of opportunity to assert its position as a trusted and resilient player in global trade.

India has set an ambitious target of USD 2 trillion in goods and services exports by 2030 and continues to achieve record-breaking milestones. It has signed numerous Free Trade Agreements with high-income countries. This will open up greater market access for Indian goods and services, enhance integration into global value chains, attract advanced technologies, and boost investments in key sectors.

At a time when companies are diversifying supply chains, India has emerged as an attractive destination for foreign direct investment and a promising hub for Global Capability Centres.

CII will strengthen the Indian industry’s integration with international markets by helping enterprises adopt global standards, enabling access to new-age technologies, and promoting outward investments. It will also work with policymakers to negotiate smarter FTAs, reduce trade barriers, and enhance labour mobility in strategic sectors.

Inclusivity

 For growth to be truly sustainable, it must be broad-based and participative. Inclusivity is a strategic necessity for enhancing long term competitiveness. India’s young and diverse population, its large and vibrant base of MSMEs, and the untapped potential across its regions present an extraordinary opportunity to democratise growth.

Recognising the importance of localised development, CII will collaborate with States to improve ease of doing business, promote rural entrepreneurship, and foster industrialisation in tier-2 and t ier-3 regions. By empowering local ecosystems and expanding opportunities in employment-intensive sectors such as healthcare, f inancial services, and education, CII will help ensure that India’s growth benefits all sections of society.

CII will expand its network of Model Career Centres to 100 locations, enabling large-scale skilling and job creation. It will also scale up programmes to increase women’s workforce participation, empower microentrepreneurs, and support MSME internships.

CII’s initiatives will also aim to unlock the potential of emerging service sectors like tourism, media & entertainment, retail, and food services. These sectors are proving to be resilient, recession proof, and significant job creators.

Sustainability

Sustainability has shifted from being just a topic in policy discussions to becoming a central focus for national and business competitiveness. Economies are facing unprecedented stress due to climate change and environmental degradation, impacting areas like food security, water availability, and public health. Indian businesses are increasingly integrating sustainability into their operations. This includes decarbonisation, improving resource efficiency, adopting circular economy models, and boosting supply chain transparency.

Through its Climate Action Charter, CII is providing structured pathways for enterprises, particularly MSMEs, to pursue decarbonisation and build climate resilience. CII will also intensify efforts in water stewardship, waste management, clean energy transitions, and building climate resilience in agriculture. On the global stage, CII will continue to support India’s advocacy for climate equity, balancing developmental needs with meaningful contributions to international climate action.

Trust

In today’s uncertain times, trust acts as a strategic tool for economic progress. It strengthens the reliability of institutions, boosts business credibility, and solidifies partnership integrity – all crucial for driving innovation and integrating into global value chains.

CII will continue to champion ethical business practices, robust corporate governance, and a culture of compliance. It will advocate for decriminalising business laws, simplifying compliance frameworks, and building a regulatory environment that fosters collaboration between industry and government.

This article first appeared in CII Policy Watch, Volume 13, Issue 6 (September 2025).