IMF's 7 pc growth forecast reflects global confidence in India
Economists and market experts on Tuesday said 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 strong global confidence in the country's economic potential.
Speaking to IANS, economist Vijay Sardana said a country with a population of over 1.5 billion offers immense opportunities for growth and investment.
"This is very good news because a vast country like India, with a population of nearly 1.5 billion, has enormous potential," he said.
"Given the development that is still taking place in the country, these GDP figures indicate that India has significant growth potential. The entire world should take this market seriously, as many investment opportunities are likely to emerge here," Sardana stated.
He added that India is well-positioned to play an important role in the ongoing global political and economic realignment.
He emphasised that India's greatest strength lies in its consumption-driven economy.
Echoing similar views, economist and tax expert CA Yogendra Kapoor of Kapoor & Associates said India has the potential to sustain a growth rate of 7 per cent or higher.
He credited the government's focus on digitisation, infrastructure development and economic transparency for creating a favourable investment climate.
"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 noted.
Kapoor said the continued increase in income tax and GST collections indicates that the Indian economy is steadily moving from the informal sector to a more formalised structure.
"If we look at the government's focus on digitalisation and infrastructure development, these initiatives create an environment that promotes not only domestic investment but also foreign investment," Kapoor told IANS.
Market expert A.P. Shukla noted that India has maintained its growth momentum despite several global disruptions since 2014, including the Russia-Ukraine conflict, the energy crisis and broader economic uncertainty.
"You may have seen that our data shows that crores of people in the country have risen above the poverty line. How did this happen? If we were not experiencing growth, how would this be possible? Today, almost everyone has one, two or even three mobile phones. People are spending more on travel, expensive houses are being sold, and lifestyles are improving," Shukla noted.
Economy expert Vinod Rawal described the IMF's growth projection as a matter of pride for the country, saying India's position among the world's fastest-growing major economies remains strong.
"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," he stated.
