Recently, Shaktikanta Das, Governor of the Reserve Bank of India, spoke about Indian buyers’ potential and purchasing desire in the context of the economy as a driver. One could even say market driver! According to him, India is already the world’s third largest economy in terms of purchasing power parity (PPP).
Given the large number of business leaders in attendance, I’d like to focus on India’s growth drivers and the opportunities that lay ahead. The Indian economy recovered quickly from the Covid-induced 5.8 percent decline in 2020-21, with growth of 9.1 percent in 2021-22 and 7.2 percent in 2022-23. India’s real GDP is predicted to rise by 6.5% in both 2023-24 and 2024-25, making it one of the world’s fastest growing big economies.
Despite the global slowdown, the Indian economy has remained resilient and has continued to grow as a result of its greater emphasis on local demand, allowing the country to weather several global headwinds. Although India has achieved rapid progress in external openness and competitiveness through trade and financial channels, its reliance on domestic demand provides a buffer against foreign shocks.
Simultaneously, major structural changes achieved in the banking, taxation, inflation control, and manufacturing sectors, among others, during the previous several years have created the groundwork for long-term and higher growth.