New Delhi: Finance minister Nirmala Sitharaman has underscored the need for “responsible capitalism”, stating that challenges for large economies are not just to achieve and sustain high growth but also to bridge gaps and create opportunities for all.
Addressing a tech leaders’ roundtable in Guadalajara in Mexico late on Thursday, the minister highlighted the rapid strides India is taking to emerge as a developed country by 2047, according to a finance ministry post on X (formerly Twitter) on Friday.
The minister dwelt on ways India and Mexico can gain from opportunities generated by each other. Sitharaman is on a visit to Mexico until October 20.
The International Monetary Fund (IMF) has forecast India will remain the world’s fastest-growing major economy in the current fiscal and the next with rates of expansion touching 7% and 6.5%, respectively, more than double the global averages.
However, the IMF expects Mexico’s economic growth to slide to 1.5% in 2024 and 1.3% next year, citing tight monetary policy and capacity constraints. Latin America’s second-largest economy had grown 3.2% in 2023.
Sitharaman highlighted India’s recently-announced centres of excellence in artificial intelligence in healthcare, agriculture and sustainable cities as potential areas of bilateral collaboration.
Presenting the full budget in July, the minister had announced the setting up of these centres, as part of a vision to “Make AI in India and Make AI work for India.” Earlier this week, the government approved the creation of three AI centres of excellence with an outlay of ₹990 crore until FY28.
Mexico has been thriving through “near-shoring” that has resulted in collaboration between multinational companies, she said, while batting for increased cooperation between the two countries.
Near-shoring refers to the practice of relocating business operations to a nearby country. Mexico, being a neighbour to the US, has been a key beneficiary of near-shoring.
