New Delhi: India is poised for an impressive 8-9 per cent GDP growth trajectory, with the potential to reach close to 10 per cent over the medium-term, according to R Dinesh, President of the Confederation of Indian Industry (CII).
However, achieving this ambitious growth depends on how the country navigates global headwinds like the fluid geopolitical situation and rising commodity prices.
Dinesh highlighted India’s focus on developing physical and digital infrastructure in recent years as setting the base for economic growth momentum. The government and RBI have also managed to keep inflation under control, a positive factor, reported BL.
While the CII currently maintains its 2024-25 GDP growth forecast at over 7 per cent, Dinesh hinted at a possible upward revision in the coming days.
The industry body expects the next government to unleash land and labour reforms to fuel inclusive economic growth.
Dinesh called for an employment-linked incentive plan, especially in sectors like tourism, logistics, and health, which have significant job creation potential.
He cited high capacity utilisation across various industries, ranging from 75-90 per cent, as an indicator of robust private investment activity.
The 126th CII Business Confidence Index showed 71 per cent of respondents expecting an improvement in private capital expenditure in the first half of FY25 compared to the second half of FY24.
However, the prolonged conflicts in West Asia and Eastern Europe have adversely affected the business outlook for over half the respondents.
On MSMEs, Dinesh emphasised the need for a formalized rating mechanism, continuing the Emergency Credit Line Guarantee Scheme, creating a fund to support their green transition, and addressing digitization.
With India’s GDP now estimated at USD 3.7 trillion, Dinesh expressed confidence that the country will become a USD 5 trillion economy in the next three years, driven by economic reforms and robust growth.
