If we get our act right and be disciplined, we can reach 8%+ growth: MEA’s Dammu Ravi

GDP growth can reach 8%

India’s economy can reach the 8 percent growth mark per annum and sustain it, if it acts right and disciplined, Ministry of External Affair’s economic relation’s secretary Dammu Ravi said at the CII Annual General Meeting on May 29.

Indian economy is set to grow 6.3 percent this fiscal as per a Moneycontrol poll of 20 economists conducted this week.

“We are faced with new uncertainties post Covid. Global growth is expected to dip in 2025, which will affect trade and consumption,” Ravi noted, highlighting the challenges.

Saurabh Garg, secretary, ministry of statistics and programme implementation reiterated this view.

“We can replicate the 8.2 percent growth achieved over the last four years,” Garg noted.

Ravi noted that the economy needed to focus on manufacturing and supply chain to ensure growth.

“We need to focus on manufacturing, the mistaken assumption is that services growth alone could help economy leapfrog,” he said.

Manufacturing growth will be driven by the new energy paradigms like EVs, renewable energy as well, the secretary of economic relations further highlighted.

“Time has come to look at even more value-added products, we need to focus on technology. R&D contribution by India is 0.7 percent, East Asia is 2.5 percent, Europe is 2 percent,” Ravi said.

He also highlighted that India couldn't be too much dependent on supply chain from one country. Ravi said that India could tap the resources from countries in South America, which it has not looked at yet.

Ravi also highlighted the need to look beyond trade deficits or surpluses and look at investments from trade deals.

“India has adopted a faster pace to sign trade agreements,” said Amardeep Singh Bhatia, DPIIT Secretary.