Prasad underscored the pivotal role of states in promoting inclusivity
Robust public investment and capex push by the Government in development, sustained growth in business and consumer confidence, and strong services sector among others will drive India’s economic growth in FY2024-25, according to Kuntal Sensarma, Chief Economic Adviser, Ministry of Rural Development https://rural.gov.in/ .
But he also listed key risks to growth and inflation such as geopolitical tensions and supply side shocks from extreme weather conditions.
As such, focus areas in 2024-25 should be infrastructure growth, inclusive development and harnessing demographic dividend among others.
India stands as the highest-growing democratic country in the World with narrowing income inequalities and softening inflation, underscored Prof. (Dr.) Ram Singh, Director and Professor, Delhi School of Economics, and Director, Delhi School of Public Policy and Governance, University of Delhi https://www.du.ac.in/ .
The proportion of investment in India’s GDP has surpassed the levels of the past two decades, he pointed out.
“India’s growth process has been highly inclusive, with decreasing inflation and income inequalities, signifying a reduction in economic frictions, growing rural consumption, and strengthened demand,” said Prof. Singh.
“In the next 7-8 years, the upper and lower middle class will constitute about 70% of the total population, indicating a further decrease in inequality,” he said.
The duo shared their insights at the PHDCCI https://www.phdcci.in/ Conference on “Economy: Inflation, Investments, Interest Rates and Inclusive Growth Perspective for FY 2024-25”, which was held on 7 May 2024.
Other speakers were Urvashi Prasad, Director, Office of Vice Chairman, NITI Aayog https://www.niti.gov.in/ , and Sakshi Gupta, Principal Economist, HDFC Bank https://www.hdfcbank.com/ .
A healthy, educated, and proficient workforce are crucial drivers of human capital, said Prasad.
Additionally, she underscored the pivotal role of states in promoting inclusivity. Leveraging technology in infrastructure, aligning government initiatives, and eliminating inefficiencies in targeted support systems were highlighted as strategies to enhance social safety nets.
“Inflation is a global phenomenon,” Gupta said, while providing key insights on the narratives of inflation and interest rates.
She highlighted that despite the challenges of the global economy, India is consistently performing well and inflation is under the target band set by the monetary policy committee.
She estimated that going forward the Indian economy will grow at the rate of 8%.
India’s economy is expanding robustly and its influence extends far beyond its borders, shaping international trade, investment, and geopolitical dynamics, added Shashvat Somany, Chair, the Economic Affairs Committee, PHDCCI.
“We appreciate that our government is very proactive in scaling up the trajectory of businesses and the size of the economy with the enhanced ease of doing business and grounded reforms for each citizen of India,” he said.
As India leverages its economic potential and embraces opportunities for higher growth and innovation, it is poised to leave an indelible mark on the future trajectory of the global economy.
Recently, PHDCCI produced a report on “Viksit Bharat@2047”, which highlighted the potential of US$34 trillion economy by 2047.
It will become the world’s 3rd largest economy by 2047, added Dr SP Sharma, Chief Economist, PHDCCI. Fiinews.com
