India stands as the highest-growing democratic country in the World with narrowing income inequalities and softening inflation, said Ram Singh, Director and Professor, Delhi School of Economics, and Director, Delhi School of Public Policy and Governance, University of Delhi.
Amid the high unemployment rate in India among youth, Singh said that the proportion of investment in India's GDP has surpassed the levels of the past two decades. 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.
He projected that in the next seven to eight years the upper and lower middle class will constitute about 70 per cent of the total population, indicating a further decrease in inequality.
The major reasons cited for India’s growth prospects in FY25 include robust public investment/ capex push by the Government, sustained growth in business and consumer confidence, and a strong services sector among others, said Kuntal Sensarma, Chief Economic Adviser, Ministry of Rural Development, Government of India.
Sensarma mentioned that the key risks to growth and inflation are posed by geopolitical tensions and supply-side shocks from extreme weather conditions. Focus areas in 2024-25 should be infrastructure growth, inclusive development and harnessing demographic dividend among others, he said while speaking at an event organised by the PHD Chamber of Commerce and Industry.
A healthy, educated, and proficient workforce are crucial driver of human capital, said Urvashi 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, said Sakshi Gupta, 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 per cent.
India’s economy is expanding robustly and its influence extends far beyond its borders, shaping international trade, investment, and geopolitical dynamics. “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,” said Shashvat Somany, Chair, Economic Affairs Committee, PHDCCI.
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 that the Indian economy will become a USD 34 trillion economy by 2047 and will become third largest economy by 2047, said SP Sharma, Chief Economist| DSG, PHDCCI.
_20240616110604_original_image_15.webp)
