New Delhi: The International Monetary Fund’s (IMF) projection that India will remain the world’s fastest-growing major economy, with a growth rate of 7 per cent, reflects international confidence in the country’s economic potential, economists and market experts said on Tuesday.
Speaking to IANS, economist Vijay Sardana said India’s large population and expanding economy offer significant opportunities for investment and long-term growth.
“This is very good news because a vast country like India, with a population of nearly 1.5 billion, has enormous potential,” he said.
Sardana noted that India’s ongoing development and expanding economic activity could open up investment opportunities across sectors. He urged global investors to pay closer attention to the Indian market, citing its considerable growth potential.
He also said India was well-positioned to play an important role in the changing global political and economic landscape. According to him, domestic consumption remains one of the country’s key economic strengths.
Economist and tax expert CA Yogendra Kapoor of Kapoor & Associates echoed this optimism, saying India had the potential to sustain economic growth of 7 per cent or more.
He attributed the favourable outlook partly to the government’s emphasis on digitisation, infrastructure development and greater transparency in economic activities, which he said had helped create a more conducive environment for investment.
“Absolutely, and I believe this target is easily achievable. Considering India’s overall economic ecosystem at this point, I believe we can maintain a consistent rate of growth,” Kapoor said.
He also pointed to rising income tax and Goods and Services Tax (GST) collections as indicators of the gradual formalisation of the Indian economy, with more economic activity moving into the organised and tax-compliant sectors.
Kapoor said investments in digital infrastructure and physical connectivity could encourage both domestic businesses and foreign investors to expand their operations in India.
Market expert A.P. Shukla said India had maintained its growth momentum despite several global disruptions since 2014, including the Russia-Ukraine conflict, the energy crisis and broader economic uncertainty.
Highlighting changes in consumption patterns and living standards, Shukla cited increased mobile phone ownership, greater spending on travel and demand for expensive homes as examples of expanding economic activity.
He also referred to the rise in the number of people moving above the poverty line, arguing that economic growth had contributed to changes in household consumption and lifestyles.
Economy expert Vinod Rawal described the IMF’s projection as a source of national pride, saying India remained among the world’s fastest-growing major economies despite slower growth in several other countries.
“Despite the fact that other countries’ economies are not growing at the same pace, we will emerge as the fastest-growing economy in the world. There is no doubt about that,” Rawal said.
The experts said India’s large domestic market, infrastructure investment, digitalisation and consumption demand would remain important factors in its economic growth outlook.
–IANS