PM Modi: This leader used to work as a sales girl, then PM Modi gave her a gift. You will be stunned to read it
India is the fastest growing economy among the major economies of the world. World Bank Chief Economist Indermeet Gill believes that many things are good for India. From demography to geo-politics and from large domestic market to low debt level in the private sector. In an interview to TOI, he said that India should try to increase its growth from 6% to 8% by focusing on efficiency, economic freedom and quality education and by keeping FDI and trade open. Gill said that India is much more fortunate than the general middle income economy. For the next two decades, its demography will remain exceptionally favorable. Investors from advanced economies looking to diversify away from China find it attractive. It is a large and fast-growing market, so foreign companies will be even more interested in setting up operations in India. Its private sector does not have too much debt.
Comparison with China
He said that India's economy is more balanced than China. It has a normal ratio of consumption to GDP, so it depends less on foreign consumption and its economic growth will not be as dangerous as China's growth was during the last two decades. Even geopolitics is quite favorable for India. India will be at the peak of its potential in the next two decades. In other words, the Indian economy will never again be able to grow as much as it can in the next two decades. India cannot miss this golden opportunity. Gill said that India will be at the peak of its potential between now and 2047. The question is how to realize that potential. India's potential growth rate is about 6%. It should be increased to 8%. India needs to become more efficient in the use of capital, skilled labor and energy. Some serious structural reforms are needed to increase efficiency. It will have to do as much work in education as it has done in digital infrastructure and roads. India needs to invest more and this investment should come from the private sector. Fortunately, India's private enterprises are well positioned for this.
India has 20 years to do it
It is not that India has to do this work in the next two years. It has two decades. But when this period is over, things will never be so good again, so it has to be done with urgency. Prime Minister Narendra Modi has done the right thing by setting the goal of a developed India by 2047, he said.