10.1% growth is necessary every year to make GDP 7 trillion dollars; Investment on infrastructure will have to be increased
GDP: According to the report released by Knight Frank India on Thursday, policymakers have made extensive efforts to expand India's infrastructure in a few years. This will increase the scope for private companies to actively participate in India's infrastructure development and economic growth.
India needs to invest close to $2.2 trillion in infrastructure development to become a USD 7 trillion economy by 2030. Also, the compounding rate has to be exactly 10.1 percent each year between 2024 and 30.
According to the report released by Knight Frank India on Thursday, Policymakers have made intensive efforts to expand India's infrastructure in a few years. This will increase the scope for private companies to participate in India's infrastructure development and economic growth actively. While participation of private companies has decreased in the development of infrastructure. Between 2009-13 these companies spent $160 bn on infrastructure development, which fell to just $39.2 bn in 2019-23.
Chief Economic Advisor (CEA) Anant Nageshwaran believes that the GDP growth rate may be 6.5-7 percent in the current financial year. The sharp decline in GDP in the second quarter may have been due to temporary reasons or a sign of some major problems. The CEA said, our growth rate is on a fast track. Some challenges may also arise due to global uncertainties. We have to be prepared to deal with them.
To meet the increasing demand, the CEA said 80 lakh jobs need to be created every year in 10-12 years. Small and medium industries should focus on increasing their size without worrying.
