Indias 7% projected growth rate amazingly fast, can double economy in 10 yrs: ADB
Team Udayavani, May 6, 2018, 11:21 AM IST
Manila: Indias projected GDP growth of over 7 per cent for the current fiscal is “amazingly fast” and if this momentum is maintained the size of the economy can double within a decade, ADB Chief Economist Yasuyuki Sawada has said.
The country shouldnt worry about not achieving 8 per cent growth but focus on increasing domestic demand by reducing the income inequality, he said. Growth is driven more by domestic consumption than exports, he added.
The Asian Development Bank (ADB) has projected India to remain the fastest growing Asian nation with 7.3 per cent growth in 2018-19, and 7.6 per cent in 2019-20. The Indian economy is forecast to grow at 6.6 per cent in the 2017-18 fiscal ended March 31, slower than 7.1 per cent in 2016-17.
“7 per cent growth is amazingly fast. If a 7 per cent growth continues for 10 years, then that economys size doubles,” Sawada said in an interview with PTI. “So thats super fast growing growth rate. And being one of the largest economies in the region, achieving this 7.3 per cent this fiscal and next year, 7.6 per cent, is really amazing,” he added.
The size of Indias economy is about 167.05₹ trillion currently, making it the sixth largest in the world. Economic Affairs Secretary Subhash Chandra Garg had said recently that the country is on track to doubling the size of its economy to 334.10₹ trillion by 2025.
Sawada said however that clocking 8 per cent growth is a “big challenge” for India as of now. “7 per cent growth is a very good number and India should not worry about not achieving 8 per cent growth.”
Asked whether export revival would be important for driving the economic growth, he said that half of Indias growth is driven by private consumption followed by investment and hence domestic market seems to play a major role in growth.
“Export is not a necessary reading for India growth. Rather domestic market seems to be very important…to support growth rate. Of course, export is one part of growth driver, but Indian growth is driven more by domestic market,” he said.
Sawada said inequality and poverty reduction would play a “very important role” in achieving higher growth because consumption can stimulate more production and that can absorb more employment. He said that poor people, if their livelihood goes up, can be good consumers.
“Tapping the broadening market will be important to achieve higher growth,” he said, adding that the services sector too would play a role in pushing up economic growth.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees
Sensex plunges 942 points to settle at nearly 3-month low; RIL, HDFC Bank biggest drag
Equity investors become poorer by Rs 7.37 lakh crore during morning trade as markets tumble
Maruti Suzuki looks to cash in on ‘few lakh marriages’ in Nov to carry festive sales momentum
Mcap of 6 of top-10 most valued firms jump Rs 1 lakh cr; State Bank, ICICI Bank top gainers
MUST WATCH
Latest Additions
Balasore tragedy result of composite negligence of railway officials: Orissa High Court
Actress Kasthuri stokes controversy by her remarks on Telugu-speaking people in TN
Three convicted for 2016 Kollam collectorate blast case
Expect Canadian government to ensure justice, uphold rule of law: PM Modi
Group clash in Indore after argument over bursting firecrackers: NSA slapped against 2 accused
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.