The Strategist

India can show 10% GDP growth

04/16/2018 - 15:13

India has already become the fastest growing economy in the world at the end of 2017. However, the country's GDP can grow at double-digit rates soon.

Nishant Vyas via pexels
Nishant Vyas via pexels
India's GDP, according to the forecast of the Central Bank of the country, will increase by 7.4% in fiscal year 2019 after an increase of 6.6% in the previous year.

"The steady growth rate is about 7%, and it can be greater with the support of decisions of regulators that contribute to production," chairman and managing director of Indian energy giant Havells Anil Rai Gupta told CNBC.

The decisions should include greater use of jobs, as well as policies that are supportive of business.

"To achieve 10% growth in GDP, India will require that the services sector grow by 20%, supplemented by growth of 8% and 4% in industrial and agriculture production," Anil Rai Gupta said. According to him, the economic foundations of India are inviting enough to reach this goal.

The national campaign "Made in India" and the young generation, a good demography of the country "will not only improve the country's patter of consumption, but will also promt the total growth rate to double-digit growth," Anil Rai Gupta said.

Number of people in India is second only to China. Investment banks, such as Goldman Sachs Group Inc., predict that the Indian economy will grow by 7.6% in the fiscal year that began on April 1, amid growing demand in the economy.

During the World Economic Forum (WEF) in Davos in January 2018, Narendra Modi said that India is working to increase the volume of the economy up to $ 5 trillion by 2025. The Prime Minister is trying to attract investors to the third largest economy in Asia in order to revive the economic growth.

In January 2018, Indian Prime Minister relaxed restrictions on foreign direct investment in several sectors, including allowing foreign carriers to invest in the state-owned airline Air India Ltd.

The country's authorities also allowed foreign retailers operating under the same brand to start local operations without the approval of the federal government. In addition, foreigners can now own up to 100% in brokerage firms conducting real estate transactions.

Since coming to power, Modi has softened the rules of investing in the defense, construction, insurance, pension and other industries. This led to a record inflow of foreign investment during the fiscal year that ended in March 2017.