In an optimistic forecast, Amitabh Kant, India’s G20 representative, shared the country’s big economic plans at the Confederation of Indian Industry (CII) Business Summit 2024 in New Delhi on May 18. Kant said that analysts are correct in predicting that India could make up 30% of the global gross domestic product (GDP) by 2040 as per target. This goal relies on India continuing its economic reforms and boosting growth in its top-performing states.
Kant highlighted how crucial India’s ongoing changes are for keeping the Indian economy growing strong. These changes include making it easier to do business, improving infrastructure, and encouraging innovation and digital technology. The government’s active efforts are already showing positive results, putting India on a path of steady growth. The near future looks bright for India’s economy. Amitabh Kant pointed out that by 2027, India is expected to grow faster than Germany and Japan, making it one of the top economies in the world. This prediction is based on India’s strong economic foundation, a young and energetic workforce, and more foreign investment coming into the country.
To reach its big goals, India plans to focus on 12 to 13 special states. These states are chosen because they have the potential to grow extremely fast i.e. about 10 percent to 11 percent each year. The government will collaborate closely with these states to create an enabling environment for rapid growth. They will do this by improving infrastructure like roads, buildings, and services, enhancing governance i.e. making rules and systems better, and fostering innovation and entrepreneurship by encouraging new ideas and businesses.
Kant stressed that the success of this strategy depends on a coordinated effort between the central and state governments. By focusing on high-growth states, India aims to create economic hubs that will drive overall national growth. These ‘champion states’ will serve as examples of excellence and engines of economic expansion, contributing significantly to India’s GDP.
As India’s contribution to the global GDP rises, its influence in international economic and political affairs will get bigger too. This will help India be better positioned to play a more significant role in global decision-making processes and make policies that align with its interests and those of developing nations. Quick economic growth, especially in the best-performing states i.e. ‘champion states,’ will create numerous job opportunities. This will consequently help address unemployment and underemployment. By encouraging a culture of innovation and entrepreneurship, India can make it to the top spot for technology and modern ways of doing business. This will not only drive domestic growth but also position India as a leader in the global knowledge economy. Having a strong and varied economy with many states growing fast will help India better handle sudden global economic problems. This is really important for keeping steady growth, especially when the global economy is unpredictable..
India’s ambitious plan to account for 30 per cent of the global GDP by 2040 is evidence of its leaders’ potential and strategic vision. By continuing to implement structural reforms and fostering the growth of key states, India is on a path to becoming a dominant and major global economic player. Amitabh Kant, who spoke at the CII Business Summit, said everyone must keep working together, from the government to local leaders, to make these plans happen.
Achieving these goals will not only make India richer but also lead to big improvements in people’s lives, making the country a more prosperous and equitable society.
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