Make business an instrument of foreign policy, says Anand Mahindra

“FTAs are sometimes inimical to scale and global reach. May I ask that the industry’s perspective be considered while negotiating these? We need prudent FTAs and need to maintain a level playing field for Indian companies even as multinationals press their policymakers to deliver them an advantage through those FTAs,” he said.

Mahindra also said that the Indian government could consider tying up international aid to industry. By making developing nations purchase from India in return for development aid, the government would be opening up markets which were otherwise closed for Indian industry, he explained.

The industry veteran emphasised that India must focus on reducing the cost of manufacturing as that could have a multiplier effect. “Our manufacturing costs are unnecessarily high, land costs, utility costs, logistics costs – all these contribute to our lack of competitiveness,” said Mahindra.

While delivering his lecture, Mahindra also highlighted the regulatory issues faced by startups, including regulations which have a retrospective impact. He asked policymakers to consider making life easier for innovators and startups.

“We need regulators to work as partners and proponents rather than being seen as taskmasters. We need to encourage astronomical amounts of innovation for a resurgent India and the fewer obstacles there are in the way, the better,” he said.