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India is now at the take-off stage of development where the young demographic with higher productivity, digitisation of the economy, and a robust infrastructure growth will help the country become a major global economy in the years to come, Mark Mobius, of Mobius EM Opportunities Fund, said on Tuesday. 

India remains the world’s fastest-growing economy with investment and private consumption driving growth. The IMF retained India’s gross domestic product (GDP) growth forecasts at a robust 7 per cent and 6.5 per cent for FY25 and FY26, respectively.

Mobius told IANS that Prime Minister Narendra Modi's 'Digital India' and 'Make in India' programmes continue to maintain the momentum.

"India also has to accelerate infrastructure spending and development, along with keeping regulations that benefit productivity and further getting rid of excess bureaucracy," the ace investor stressed.

The growth story remains intact as its fundamental drivers - consumption and investment demand - are gaining momentum.

The RBI has forecast that the country is likely to see real GDP growth at 7.2 per cent for FY 2024-25. Prospects of private consumption, the mainstay of aggregate demand, look bright on the back of improved agricultural outlook and rural demand.

According to Mobius, the stock market reflects the pickup in the economy and the growth of the economy.

"There will be periods when the stock market corrects downwards but this will be temporary. The general bullish trajectory is in place."

According to him, consumers with per capita incomes are moving up and aspirations are rising.

"The consumer market will be very, very important going forward. You have to align it with what's happening in the US, or what has happened in the US. You can see the consumer market is huge and drives the economy to a great extent. This is the same case with India," Mobius told IANS.

According to the RBI, domestic growth has sustained its momentum, with private consumption and investment growing in tandem. Rural consumption spending is rebounding due to moderating inflation, specifically in food.

Mobius said that going forward, there will be greater urbanisation in India, which means much more consumption than what we've seen in rural areas. "The high growth rate, over 7 per cent in real terms, and growing per capita income, puts India on an incredible path to greater prosperity and, probably becoming the largest economy in the world," Mobius told IANS.