India’s Economic Growth to Expand Employment Opportunities: Expert
14:05 21.11.2023 (Updated: 14:59 21.11.2023)
A screenshot showing that India’s GDP has exceeded the $4 trillion mark for the first time recently went viral. And although there has been no official commentary on the matter, the Indian economy is growing fast.
India's economy has been growing over recent years. The major factors behind the steep economic rise are rapid progress in innovation and technology, higher capital investment and increased worker productivity along with a swelling population.
Several organisations like S&P Global Market Intelligence and Goldman Sachs in their respective reports have predicted that Indian economy is likely to grow at a rapid pace surpassing countries like Germany, Japan, and even the US.
In October this year, a report by S&P Global Market Intelligence said that India will surpass Japan and Germany by 2030 to become the third largest economy of the world while a report of Goldman Sachs published in July this year claimed that the India will surpass the US by 2075 to become the second largest economy.
Similarly, there were reports published by several media outlets which claimed that India has reached a historic milestone on Sunday (19 November) when its GDP surpassed the $4-trillion mark for the first time.
However, neither there has been an official confirmation or denial of the claim but several politicians and businessmen including Gautam Adani hailed the feat.
Later on Monday, several economists said that as of now India has not reached $4-trillion GDP mark but is not far away.
also reached out to economic experts to talk about how India is placed globally with such a steep economic growth
and what challenges does it pose for the country.
Economic expert Sudhanshu Kumar told Sputnik India that India’s growth story is one of the most remarkable in recent times and the country has achieved the highest growth rate among the large economies in the world.
“The achievement is despite the challenges posed by several supply chain disturbances across the world. In addition, different rating agencies have estimated this growth momentum to continue in the coming years. These signals authenticate the potential of the Indian economy to achieve more such landmarks,” Kumar stated.
India Enroute to Reduce Economic Inequality
Meanwhile, S.P. Sharma, Chief Economist, PHD Chamber of Commerce & Industry (PHDCCI) told Sputnik India that the economic growth reflects the strength of the country’s capability to produce goods and services with the efficient use of resources and conducive ecosystem and business environment provided by the government.
“India is consistently growing at more than 7 per cent for the last two financial years and in 2024 India is expected to become a $4 trillion economy, and more than $7 trillion by 2030,” Sharma said.
On challenges for India amid the economic growth
, Kumar said that ensuring energy security remains a challenge for India.
“As economy grows, its energy demand is expected to increase manifold. At present, large share of these are imported. The availability and price of petroleum products in the global market is hugely impacted by the geo-political development. Therefore, it remains a challenge for India to ensure a sustainable supply of these products or find its alternative,” the economic expert said.
According to Sharma, sharp economic growth is a chance for India to expand employment opportunities in the country.
However, he feels that some inflationary challenges might come from time to time but they can be addressed by the calibrated steps of the government and the Reserve Bank of India
When asked about how government can address the challenge of making everybody in the country benefit from the big GDP, Kumar said that the equitable distribution of overall economic gains has remained a challenge for all countries across the world.
“The developed and developing countries have struggled to reduce economic inequality. As far as India is concerned, it has adopted various policies to redistribute fiscal resources in the form of direct benefit transfers to the targeted population. Among many, the provision of free food grains among the 80 crore poor families in the country is remarkable,” he stated.
On the other hand, the chief economist at PHDCCI said that the efforts of the government are to create overall socio-economic development of the country, employment opportunities
for the growing young population, and to achieve an inclusive growth trajectory so that benefits of high growth are percolated to ground level.