India is expected to grow by double digits this year: Finance Minister Nirmala Sitharaman

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Finance Minister Nirmala Sitharaman said that India is expected to grow by double digits this year, making it one of the world’s fastest-growing economies. The minister also stated that she anticipates economic growth to be in the range of 7.5-8.5% in 2022 that will continue for the following decade.

During a discussion at Harvard Kennedy School, Sitharaman said, “In terms of India’s growth, we’re expecting at double-digit growth this year, which would be the highest in the world.” And next year, on the basis of this year, (growth) would most likely be in the area of eight percent.”

The finance ministry is yet to reach a conclusion on the growth rate, though World Bank, IMF, and rating agencies have all assessed and given a figure close to this number for India.

Sitharman said that the next year’s increase would be somewhere between 8% and 9%, with a range of 7.5 to 8.5%.

“I expect it will continue for the next decade because of the rate at which core sectors are expanding and services are increasing. I don’t see any reason for India to be anything less than” in the future decades, she said.

When asked about the state of the world economy, Sitharaman said: “I don’t think you can have one picture for the entire planet.”

Emerging market economies are expected to recover quickly and to be on a growth path that will almost certainly earn them the moniker of a “growth engine.” They are the ones who are going to propel the global economy ahead.”

She also mentioned that India is a strong market. “Today’s demographic dividend isn’t for no reason. It’s a dividend that has a lot of purchasing power. “The Indian middle class has the money to buy goods,” she said, adding that people who are moving to India to invest and create will have a captive market.

“The same demographic dividend gives us another edge – today’s Indian youth population is a talented bunch of kids skilled in multiple different sectors, the majority of whom are in STEM,” the minister noted.

Even today, India is the strongest in agriculture. “Many countries rely on imported food for their food security. Many people in the Middle East rely on India for essential food supplies. She went on to say, “We will be one of the largest exporters of food and food processing goods.”

UN, IMF, World bank need to reformed

Institutions like the United Nations, World Bank, and International Monetary Fund, according to Finance Minister Nirmala Sitharaman, need to be transformed immediately since they no longer speak for countries whose issues have gone unaddressed for decades.

She remarked on Tuesday at Harvard Kennedy School that all of these institutions will have to consider revamping themselves.

“While reforms in countries are happening in different stages, these global institutions have remained the way they have been for the last several decades,” Sitharaman said during a conversation with Harvard University Professor Lawrence Summers at a talk organised by the Mossavar-Rahmani Center for Business and Government.