Confidence in the Indian economy is very strong. Such an indication was given by Krishnamurthy Venkata Subramanian, India’s executive director at the International Monetary Fund (IMF) on Thursday. Subramanian said that if the country can double down on the good policies implemented in the last 10 years and accelerate reforms, the Indian economy can grow at the rate of 8 percent by 2047. According to PTI news, Subramaniam further said that clearly the growth rate of 8 percent is ambitious, as India has not been able to grow at a consistent rate of 8 percent before, but it can be achieved.
Then India can become a 55 billion US dollar economy
According to the news, he said in an event that India’s economy grew at a better-than-expected rate of 8.4 percent in the last three months of 2023, which is the fastest pace in the last one and a half years. The growth rate in October-December helped take the estimate for the current financial year to 7.6 percent. Subramanian said that if India grows at the rate of 8 percent, then India can become a US $ 55 billion economy by the year 2047. He pointed out that historically since 1991, India’s average growth has been a little over 7 percent.
About 58 percent of the country’s GDP comes from domestic consumption.
Subramaniam stressed that India needs to strengthen its domestic economy as about 58 percent of the country’s GDP comes from domestic consumption. He said that so, you know, we have the potential if we can create enough jobs, you know, that will lead to a lot of consumption. India’s IMF Executive Director stressed the need to encourage the manufacturing sector to generate employment.
He also said that there is a need for reforms in land, labour, capital and logistics sectors. Subramanian said there is a need to reform the manufacturing sector, but at the same time, we also need to reform our banking sector to provide credit to the manufacturing sector.
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