Lagatar24 Desk
Boston, Oct.13: India is expected to grow by double digits this year, making it one of the world’s fastest-growing economies, according to Finance Minister Nirmala Sitharaman.
The Minister also stated that she anticipates economic growth to be in the range of 7.5-8.5 percent next year, which she intends to continue for the following decade.
“As regards the growth of India, we are looking at near close to double-digit growth this year and this would be the highest in the world. And for the next year, on the basis of this year, (the) growth would definitely be somewhere in the range of eight (%),” Sitharaman said on Tuesday during a conversation at Harvard Kennedy School.
She pointed out that, while the Ministry of Finance has yet to make a determination on the growth rate, the World Bank, IMF, and rating agencies have all gotten close to this figure for India.
“So, the next year would also be somewhere in the range of eight to nine (%), 7.5 to 8.5 (%) would be the growth. And I expect that to be sustained for the next decade because of the rate at which expansion in core industries is happening, the rate at which services are growing, I don’t see a reason for India to be any way lesser than” in the next coming decades, she said.
When asked about the state of the world economy during a conversation with Harvard University Professor Lawrence Summers at the Mossavar-Rahmani Center for Business and Government, Ms Sitharaman said,“I don’t think you can have one picture for the entire globe. The emerging market economies are likely to recover speedily and are likely to have a growth trajectory, which will probably be even the title of engine for growth. They are the ones who are going to be pulling forward the global economy”.
“And in that, at least from the data which has been released yesterday and the week before, I can say that India’s growth this year will be the highest in the world, of course, based on a lower base of last year, but that will continue into the next year. And even there, we will be one of the fastest-growing economies,” she noted.
She went on to say that several other developing market countries will have strong growth rates as well.
She also mentioned that India is a massive market. “Today’s demographic dividend isn’t for no reason. It’s a payout that has a lot of purchasing power. “The Indian middle class has the money to buy goods,” she said, adding that people who are moving to India to invest and create will have a captive market.
“The same demographic dividend gives us another edge – today’s Indian youth population is a talented bunch of kids skilled in multiple different fields, the majority of whom are in STEM,” the Minister noted.
Even today, India is the finest in agriculture. “Many countries rely on imported food for their food security. Many people in the Middle East rely on India for essential food supplies. She went on to say, “We will be one of the largest exporters of food and food processing goods.”
Similarly, India manufactures labor-intensive units, partly-skilled labor-intensive industries such as textile, footwear, and leather, as well as specific parts and components for the industry. “As a result, I have every reason to assume that this 7.5 to 8.5 (percent) growth rate will be totally sustainable over the next decade.” These are characteristics that do not exist in any single country. One could be in one country and the other in a different one. “However, India has everything,” the Minister stated.
