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A report released by FT Mutual Fund titled FT Global Perspective has estimated that the Indian economy will grow at 7% for the next 10 years.
The report said that the expected GDP growth will double the size of the economy to almost USD 7 trillion and the per capita income to almost USD 5,000.
The report attributes this growth to a combination of policy reforms like the Production Linked Incentive (PLI) scheme and other factors such as China+1 strategy for manufacturers.
Here are some highlights of the report:
- Innovations like Aadhaar and UPI will help the e-commerce and fintech space
- Due to GST, companies are able to source inputs on a pan-India basis and move imports and exports with ease. This has added renewed impetus for better road, rail and port infrastructure, which is being delivered
- The PLI scheme is driving a significant increase in manufacturing, led by mobile phones and electronic equipment. This is expected to accelerate in the year ahead
- Innovation in e-commerce, fintech, technology and finance sector are creating employment and democratizing access to credit in the economy
- The Production Linked Incentive (PLI) and China+1 strategy will boost exports. India’s renewed emphasis on pursuing free trade agreements with its trading partners also complements it
