While the first quarter GDP growth rate is yet to be announced, most economists and central bankers are predicting an impressive growth rate of nearly 8%. This is a continuation of the 7.2% annual growth that India showed in 2023. India’s continued growth momentum should not be viewed in isolation.
It is the culmination of many elements and initiatives carried out over the past nine years, supported by tight enforcement and management. Over the past decade, the state has increased infrastructure spending, streamlined its corporate tax structure, introduced structural reforms such as GST, the Bankruptcy and Bankruptcy Code (IBC), and authorized the transfer of funds. large-scale digital transformation while keeping inflation moderate and ensuring social welfare. This has led to strong stock market development and FDI growth.
Potential for faster growth
Recently, Morgan Stanley upgraded India’s rating to “Overweight” and lifted the country’s market to the top from sixth, thanks to favorable foreign capital flows, macroeconomic stability and positive earnings outlook. Although India today stands out as the world’s growth oasis, it has the potential to grow even faster and surpass the glass ceiling of 8-10% GDP growth. This can be achieved through continued push for structural reforms – particularly in the land, labor productivity, human capital and financial sectors. As we persist in reforming our political agenda, India must focus on private saving and private investment. To do this, we must pursue reform of bankruptcy and default laws, encourage the liquidation of non-essential assets, implement a plan to monetize the country faster, and emphasize the ease of doing business. doing business in partnership with the States.
Focus on trade and export
All of this combined will attract more FDI, in addition to domestic investments. The Ministry of Trade and Industry says that India’s exports of goods and services will exceed $2 trillion by 2030 from $765 billion currently (which in itself is very important in global circumstances). ).
To do this, we must continue to commit to promoting targeted free trade agreements, such as successful with Australia and the United Arab Emirates – even more important in a world non-globalizing world.
Boosting exports will create millions of jobs in the formal sector with higher wages and social benefits. To catalyze further, the role of the rupee cannot be underestimated. It can act as a natural balance for economy and competitiveness.
