India looking close to double digit growth this year: Finance Minister Nirmala Sitharaman

Boston: Finance Minister Nirmala Sitharaman has said that India is approaching double-digit growth this year and the country will be one of the fastest growing economies.

The minister also emphasized that he expects economic growth next year to be in the range of 7.5-8.5 per cent, which will continue for the next decade.

As far as India’s growth is concerned, we are witnessing close to double digit growth this year and it will be the highest in the world. And for next year, depending on this year, (a) growth will certainly be somewhere in the range of eight (percent), Sitharaman said during an interaction at Harvard Kennedy School here on Tuesday.

He said that the Finance Ministry has not yet made any assessment about the growth numbers, but the World Bank, IMF and rating agencies have all come close to such growth numbers for India.

So, next year also there will be an increase of somewhere between eight to nine (per cent), 7.5 to 8.5 (per cent). And I expect that to continue for the next decade, given the rate at which core industries are expanding, the rate at which services are growing, I don’t see any reason for India to be any lower than the next Is. in the coming decades, she said.

During a conversation with Harvard University professor Lawrence Summers during talks organized by the Mosawar-Rahmani Center for Business and Government, Sitharaman when asked about the state of the global economy said: “I don’t think you have it for that.” One picture can be the whole globe. Emerging market economies are likely to recover rapidly and have a growth trajectory, which will probably also be titled as engines of growth. They are the ones who are propelling the global economy.

And in that, at least from the data released yesterday and a week ago, I can say that India’s growth this year will be the highest in the world, of course, based on the bottom base last year, but it will be in the next year. continue. And even there, we will be one of the fastest growing economies, he said.

He added that some other countries in emerging market areas will also register higher growth rates.

The developed world will also catch up because their base is too high. So, the growth they can show will not be close to double digits, but will certainly add up to global growth, she said, adding that she “sees a different picture in different regions.

Asked about sustained growth of 8 per cent, a historical rarity, her medium and long-term outlook on where that growth is going to come from, Sitharaman underlined that she does not think any country’s growth The comparison can be made after the pandemic. What happened before the pandemic?

He said that the reset that the world has seen tells you a narrative that the way countries are going to plan their development is going to be very different than before.

She noted that the COVID-19 pandemic itself is one of the reasons for the reset, which is happening from certain geographies where people are coming out of it, looking for other places from where they can run their business Because you no longer have transparency and the rule of law in certain geographies.

Therefore, the industry is the first to exit. Investments are the first to exit and they are looking for destinations where certain assumptions can be taken – rule of law, democracy, transparent policies and assurances that you are with the broader global framework of things and that you are not an outsider, that your Nothing to do with the global plan, and that doesn’t bode well for us.

The minister said that these are all external factors that helped India attract industries to set up business there.

He also told that India itself is a huge market.

Our demographic dividend today is not a dividend without reason. It is a dividend, with great purchasing power potential. The middle class in India has money to buy things, he said, adding that people who are moving from other destinations to invest in India and produce in India will have a captive market.

The same demographic dividend also gives us another advantage – India’s youth population today is a skilled pool of youth skilled in various fields, most of whom are in STEM, the minister said.

Sitharaman said India will attract investment and whoever produces it will have the purchasing power to demand the best of things.

India is still the best in agriculture. The food security of many countries depends on imported food. Many people in the Middle East depend on India for their basic food items. He said that we will be one of the largest exporters of food and food processed ingredients.

Similarly, labor intensive units, partly skilled manufacturing of parts and components for labor-intensive sectors such as textiles, footwear, leather, and industry, are manufactured in India. So, I see every reason to believe that this 7.5 to 8.5 (percent) growth is absolutely sustainable for the next decade. These are characteristics that are not present in any one country in all. You may have one in one country, and the other in a different country. But India has it all, the minister said.

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