India is well set towards the path of achieving high growth but at the same time, a boost to some indicators including employment generation and private investment is needed which are a must for sustaining the trajectory, said former Economic Affairs Secretary R Gopalan.
“India will grow well as it has most of the ingredients for growth in place. However, to get sustained growth, we need to get private investment in place and focus on employment generation,” R Gopalan told Moneycontrol.
In an uncertain world, where the global economic landscape is evolving rapidly, India offers stability and growth. With its sheer size of market, impressive GDP growth and large middle class, it presents a compelling case for long-term growth prospects.
India is expected to maintain its pole position as the world’s fastest-growing economy in 2023 as well despite global geopolitical and financial uncertainties.
India is now home to 1.4 billion people, recently surpassing China to become the world’s most populous country, according to United Nations estimates. More than 600 million people are aged between 18 and 35, and this is expected to continue till at least 2055–56.
The much-awaited revival in private investments is still due to happen as manufacturing companies had used the recent pandemic years to deleverage their balance sheets by holding back fresh investments.
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On the employment front, EPFO data shows over 1.5 crore new subscribers joined in FY23. Of this, 52 percent were in the age group of 18-25, indicating that most of these are first-time jobs. Even if we attribute a portion of the over 25 age group to formalisation, at least 1 crore new jobs are being formed every year in the formal sector.
Also with India holding the G20 presidency this year, it has a crucial role to play and this offers a great window of opportunity. “G20 is used as a forum to get ideas incorporated so that they can be implemented with some focus as we go along. India is making a contribution this year in that direction,” Gopalan said.
Under its G-20 presidency, India has been flagging concerns of the Global South including in areas of food, fuel and fertilisers besides focusing on ensuring inclusive global growth, speedy implementation of the sustainable development goals (SDGs) and green development among others.
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