India is growing faster than any of the other top 10 nations in the world, said Puneet Chhatwal, MD & CEO of The Indian Hotels Company Ltd (IHCL), in an exclusive interview with Moneycontrol on the sidelines of the B20 summit in New Delhi on August 25.
The Business 20 (B20) is the official G20 dialogue forum with the global business community. Established in 2010, B20 is among the most prominent engagement groups in G20 with companies and business organisations as participants.
"The whole world is bullish on India. It is growing faster than any of the other top 10 nations in the world. The GDP growth percentages are very healthy. India has a demographic dividend, in terms of a young population," said the MD & CEO of IHCL, which runs the Taj Group of hotels.
Chhatwal added that events like landing on the moon or creating a vaccine in the midst of COVID-19 has given a certain positioning to India, and a certain sense of self-confidence to Indians.
"Also, respect has been earned by India in a very fair and innovative fashion, which is making us believe that the future is brighter and brighter and brighter," he added.
"So, I think, in a way, this event is a real boost to the tourism sector of India,” Chhatwal added.
Tourism industry growth
The direct contribution of the Indian hotel industry to the country’s GDP is estimated to touch $1 trillion by 2047, driven by a significant jump in domestic tourist visits and international arrivals, according to a report.
According to ‘Vision 2047: Indian Hotel Industry’, a report by the Hotel Association of India (HAI) and Benori Knowledge, the direct contribution of the hotel industry to the GDP was $40 billion in 2022, and it is expected to reach $68 billion by 2027.
‘India should continue reforms’
India will become the third-largest economy in the world in a few years, but it's important for the country to continue reforms, build better infrastructure, and invest in education, World Economic Forum (WEF) President Børge Brende said.
Brende, who was speaking at the B20 Summit in New Delhi on August 25, highlighted the pivotal nature of India's G20 presidency, emphasising its growing global significance.
“There is a great deal of optimism in India, which is also the foundation of India’s Presidency of the G20. India has been the fastest-growing economy for three years in a row amidst sluggish global growth. India will be the world's third-largest economy in a few years, and it is vital for the country to continue reforms, build better infrastructure, and invest in education," he said.
The International Monetary Fund (IMF) has raised its GDP growth forecast for India for 2023-24 to 6.1 percent from 5.9 percent due to the blowout growth number for January-March.
"Growth in India is projected at 6.1 percent in 2023, a 0.2 percentage point upward revision compared with the April projection, reflecting momentum from stronger-than-expected growth in the fourth quarter of 2022 (financial year 2022-23), as a result of stronger domestic investment," the multilateral agency said on July 25 in an update to its World Economic Outlook (WEO) report.
Data released on May 31 showed India's GDP growth for Q1FY23 rose to 6.1 percent, comfortably beating all expectations and forcing the statistics ministry to raise its estimate for growth in FY23 by 20 basis points (bps) to 7.2 percent.
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