Mumbai : Industrialist Adi Godrej is optimistic that the future of India. He strongly believes a road to reform will take India to new heights by 2050.
Godrej said, “In the purchasing power parity (PPP), India should be able to become the largest economy globally by 2050.” He said this while addressing a group of Rotarians, after being conferred Pravinchandra V Gandhi Award.
He added, “In the period of 2030 to 2040, Indian economy should be able to overtake the US in PPP. In the period of 2040 to 2050, it should be able to overtake China.” He stressed that to truly capitalise these opportunities, India needs to truly push for further reforms in area such as labour law reforms, improving ease of business, and legal system reforms.
At present, 10 million people enter Indian workforce every year and most of them are low-skilled workers. There is a need to educate, skill and train this workforce, to reap the demographic benefits (young population), stated Godrej.
Quoting the World Bank, Godrej said, “India continues to remain the bright spot globally as the fastest growing major economy with GDP growth estimated to be 7.3 per cent for FY 2018…” Even though the internal assessments by the country have been lower. Godrej attributes this muted growth rate to uncertainty around possible financial stress; increase in protectionism and rising geopolitical tensions especially give the policy stance of the US administration and its global ramifications.”
Commenting on demonetisation, he said it has given the needed digital push and increased compliance. Further, Goods and Service tax (GST) is a significant achievement and its implementation will have a positive impact on the economy, Godrej opined. “In my view, single national value-added tax is a key reform since liberalisation in 1991.”