Virendra Pandit
New Delhi: While the Reserve Bank of India (RBI) recently pegged India’s GDP growth at 6.5 percent this year—and the government’s numbers expected next week may declare a 7 percent growth—the World Economic Forum is seeing the South Asian economy to clock the highest growth among the world’s biggest economies this year.
The Indian economy is witnessing the “famous snowball effect” that will lead to more investments and more jobs, WEF President Borge Brende said on Thursday.
This year, WEF expects almost 6 percent economic growth for India which will be the highest growth for any big economy in the world, he said.
Recent reforms reduced red tape, created a better climate for investments, and the digital revolution is really happening in India, he said and stressed that he is “very bullish and optimistic” about India’s growth trajectory but not so optimistic about global growth, a media report quoted him as saying.
India, which currently holds the G-20 presidency, is among the fastest-growing major economies in the world. The WEF has had close collaborations with the country for the past many years.
“When the snowball starts to roll, it grows bigger and bigger, and that is what is happening with the Indian economy.
“The growth will lead to more investments, more jobs… it will be an exponential growth in the coming years and you will see a situation where more poverty is eradicated and more opportunities are there for young people.”
The WEF chief, who discussed the ongoing collaborations and India’s G-20 presidency with stakeholders in New Delhi, also met Union ministers and company executives.
“I think that nations in the developing world could learn from India. It is the largest democracy worldwide and also an open society with entrepreneurs and innovators and free speech,” he said.
Asked what India should do in the short term, Brende said the South Asian country is already capitalizing on the yield from the economic reforms. “That should be the inspiration to continue with the reform agenda.” He said investing more in infrastructure, connecting different regions even better, and that India needs more investment in education, upskilling, reskilling and right skilling in the years to come.
Brende, a former Norwegian Minister of Foreign Affairs, Trade and Industry, underlined what best India did during the coronavirus pandemic.
“Some countries overspent on stimulus, that there is no ammunition left. India was not in debt itself, of course. It came up with stimulus but Prime Minister Narendra Modi was able to hold back whereas some countries are in a debt trap.”
India has more of a broad ecosystem of startups than any other developing country, which is growing. This is something that different countries can also be inspired by, he added.
The WEF, headquartered in Geneva, Switzerland, is a global organization for public-private cooperation. It is known for its annual Davos meeting, often described as the biggest congregation of the global elite, which engages political, business, cultural, and other leaders of society to shape global, regional, and industry agendas.
“We, at WEF, see the growth path forward for India that is also strong… I am optimistic, provided no external factors will influence me negatively. We have no time for wars, conflicts and we have no time to be complacent,” he said.
Earlier this month, the United Nations said the Indian economy — the largest in the South Asia region–could expand by 5.8 percent in 2023 and 6.7 percent in 2024 (calendar year basis), supported by resilient domestic demand.
However, higher interest rates and weaker external demand will continue to weigh on investment and exports in 2023, the UN said in the World Economic Situation and Prospects Mid-Year Update.