India’s GDP growth may exceed forecasts: WEF
Its chief predicts 7-8% GDP growth on back of higher investments driven by economic reforms
New Delhi : World Economic Forum (WEF) president and CEO Borge Brende has forecast a 7 to 8 per cent GDP growth for India on the back of higher investments driven by economic reforms.
In an interviewin Switzerland’s Davos, Brende said: “India has a great potential, and it is still growing pretty well, 6 per cent this year. But there is no reason why India cannot pick up again and do 7 per cent, 8 per cent, provided that there are reforms on investments, infrastructure, investing in education and R&D.”
“We do expect that in a few years, India will be 20 per cent of the overall global growth. That is quite incredible. And what works also for India is the enormous strength in startups. There are more than 1,20,000 startups in India. I think there are now more than 120 unicorns. So that ecosystem, I think, is the basis also for future growth,” he pointed out.
On whether India’s target of becoming a developed nation by 2047 is realistic, Brende said India would be a $10 trillion economy soon, and what also works in the interest of the country is that the economy is now pivoting more towards digital trade and services.
“That’s growing three times faster than traditional goods. And these are areas where India is very strong,” he remarked.
In answer to a question on some of the key challenges or opportunities that come with greater digitalisation of the workforce, Brende said:“It’s increased productivity. Productivity is like producing more with less resources. And of course, this will challenge some jobs that are back offices today or other jobs. But if that can lead to people moving into areas where you produce higher up in the value chain, you can pay better, you can produce more. And that’s prosperity.”
“So, for India, there are of course huge opportunities when it comes to new technologies. But short term, it also creates challenges because one has to upskill and reskill people,” the WEF president added.
With the world grappling to stick to the 1.5 degree Celsius or below mark in global warming, the WEF has integrated climate as a primary driver in its processes.
“It’s [climate] incredibly important. And I think you just came back from Los Angeles. You saw the wildfires. We have seen droughts. We know that agriculture production and the production of food are being more challenged now because there are areas where you can’t just grow what you used to grow.
“So in general, I would say that the cost of inaction far exceeds the cost of action when it comes to climate change. So we need to keep up the momentum. We will need to emit less CO2 (carbon dioxide) in the years to come to even be able to stick to a 2-degree target,”Brende told NDTV.
India has a great potential, and it is still growing pretty well, 6 per cent this year. But there is no reason why India cannot pick up again and do 7 per cent, 8 per cent, provided that there are reforms on investments, infrastructure, investing in education and R&D
- BorgeBrende, president & CEO, WEF
