Business Standard

‘India an oasis of growth’

- ANEEKA CHATTERJEE Bengaluru, 21 March

IT IS VERY IMPORTANT THAT OUR AMBITION CANNOT BE 7% OR 7.5%, IT MUST BE VERY HIGH TO MAKE A 10% GROWTH” AMITABH KANT India’s G20 Sherpa and former CEO, NITI Aayog

Service sector alone cannot put India on a fast growth trajectory, G20 Sherpa Amitabh Kant said on Thursday, while asserting that the next phase of the country’s growth must come from manufactur­ing and smart urbanisati­on.

While speaking at an event of the Confederat­ion of Indian Industry in Bengaluru, Kant said that India must aim to accelerate its pace of growth to 9-10 per cent over a three-decade period. The former NITI Aayog CEO also said that a lot depends on how states are performing.

“It is very important that our ambition cannot be 7 per cent or 7.5 per cent, it must be very high to make a 10 per cent growth over a threedecad­e period. India cannot grow at all on the back of the services sector. India needs to grow on the back of manufactur­ing, smart urbanizati­on, and agricultur­e. India cannot grow only on the back of the central government, it will only grow if the States grow,” Kant said.

He suggested that if India grows at 10 per cent, it would mean the gross domestic product (GDP) would surpass $35 trillion by 2047, elevating the per capita income to around $24,000.

Kant emphasised India’s potential to outpace Japan and Germany, projecting it to become the world's thirdlarge­st economy by 2027. He predicted India’s ascent to the third-largest stock market by the same year's end.

“India has emerged as a resilient powerhouse during the last three quarters and is an oasis of growth. This is a once in a generation economic shift that is taking place, in its economic position, a rare movement,” Kant added.

Kant shed light on India’s consistent growth, surpassing 8 per cent in the last three quarters.

According to the Internatio­nal Monetary Fund (IMF), India is anticipate­d to contribute about 20 per cent of the world’s economic expansion in the next decade.

Discussing India’s anticipate­d growth, Kant suggested transition­ing people from agricultur­e to manufactur­ing-led smart cities to create better-quality jobs and foster economic developmen­t.

“The challenge with India is that 42 per cent of our population is in agricultur­e. About 18-19 per cent of the GDP is coming from agricultur­e which is too high as the world average is about 5-6 per cent,” added Kant.

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