India will be epicenter of growth for two and a half decades: Rajiv Kumar

Rajiv Kumar, former vice chairman of Niti Aayog

India, which continues to be the fastest growing economy in the world, will remain the epicenter of global growth for two and a half decades as it combines forces on infrastructure, energy, skilled manpower and entrepreneurship, former NITI Aayog vice chairman Rajiv Kumar said.

“India is the fastest growing economy in the world and we will remain so in times to come. It is India's moment in global economic history. My optimism for India’s 8 percent growth comes from that, though it may not be achieved in FY24. I am confident that given the global situation, India will be the epicenter of global growth for two and a half decades or longer,” Kumar said at Moneycontrol Policy Next.

If India is able to convert its young population into employable skilled workforce, which the national education policy is focused on, then along with infrastructure, energy, entrepreneurship will combine forces, he said.

“My firm belief is that India will grow only if private investors, businesses, get necessary conditions for growth, and that is happening. Government clearly aligned to the view that its private sector will make India's story happen,” Kumar added.

For the first time, global conditions of friendshoring and de-risking from China are in sync with domestic conditions and they are propitious, he opined.

Friendshoring is a strategy where a country sources the raw materials, components and even manufactured goods from countries with shared values taking the geopolitics into account in their risk assessments.

Global supply chains from North America and Europe have been looking at de-risking from China business that is likely to benefit India. Many companies, who were buying from China, are diverting to India. China de-risking can prove to be an opportunity for India.

Kumar said that if all policy changes happen prospectively, the private sector will feel secure and less uncertain. Private sector investment is happening in the health, education, IT services.

The introduction of GST changed the climate for small and medium enterprises, which are now moving to formalisation making our regional supply chains longer.

With the product-linked incentive scheme in 14 sectors having $26 billion outlay, both foreign and domestic investors will recognise the government’s efforts towards promoting businesses, he said.

Government is also aiming to transform agriculture with focus on chemical free farming, he added.