|
Highlighting India's growing economic potential, the 15th Finance Commission Chairman NK Singh stated that the country's large unsaturated domestic market offers significant opportunities for private investment, public-private partnerships, external private investment, and internal resource mobilisation.
Speaking on the sidelines of the 4th 'Kautilya Economic Conclave 2025' in the national captial on Friday, Singh said, "We are at the inflexion point when there are many virtuous circles that will enable us to effectively address the headwinds that may be before us." During his address at the opening session of the conclave, Singh outlined India's macroeconomic strengths and growth trajectory. He pointed out that India remains the world's fastest-growing major economy, with a robust macroeconomic foundation, and is on course to become the third-largest economy globally. Citing recent economic data, Singh said, "In April-June 2025, real GDP growth surged to 7.8 per cent, surpassing expectations. Even after recalibration, the Reserve Bank of India expects a conservative GDP growth estimate of 6.8 per cent for FY 2025-26. These are not small achievements." He emphasized that India's structural reform process continues at a formidable pace. According to Singh, the far-reaching changes to the Goods and Services Tax (GST) under the current leadership will enhance fiscal space, boost consumption, improve ease of doing business, reinforce investor confidence, and contribute to higher economic growth. "It would be an important factor in mitigating the adverse effects of external factors," he said. Singh also highlighted India's historical growth trends. "India's average real growth for many decades was around 3.5 per cent with population growing at just over 2 per cent, resulting in per capita income growth of just 1 per cent," he said. Singh noted that with the population growth rate now below 1 per cent and nominal income growth above 6.5 per cent per annum, per capita income is currently growing at 6 per cent, a sixfold increase compared to the past. "The power of compounding implies that per capita income could double by the end of this decade, a remarkable feat in any recent experience. This is surely the path to prosperity," Singh said. He added that achieving the common quest for development would require real per capita GDP to grow at over 7.5 per cent. (ANI)
|
