U.N.: India Can Grow at 8% for Next Two Decades

According to Sebastian Vergara, an Economic Affairs Officer at the United Nations, “India, in our assessment, has the potential to grow at eight percent, not for a few years, but 20 years. For that, India needs to come out with the next series of reforms, for example, promote investment and improve the living conditions of its population.”

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Describing India’s economic condition as largely positive and “favorable to growth”, Vergara mentioned various reasons that contributed to this situation:

  • “One of this is the growth of private consumption and sound macroeconomic policies. The monetary policy, which has been able to control inflation, also has a role to play.”
  • “Fiscal policy in India, in our assessment has been prudent. At the same time, it has provided another support for the economic activity.”
  • “There has been deregulation and further liberalization of the policies regarding foreign direct investment.”
  • “As the year went on, measures were implemented, financial relief was introduced, steps like credit support for small enterprises helped contain the shock that the demonetization policy created.”

He added that demonetization has benefited the banking sector and increased the tax base — which will help the fiscal accounts; he praised the Indian government’s emphasis on public investment and infrastructure projects, reports moneycontrol.

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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