Indore: India needs 10% GDP for 3 decades to become developed nation

Indore: National Institutional for Transforming India (NITI) Aayog CEO Amitabh Kant presented vision, strength and challenges for transforming the country and brining it in league of developed nations.

“We need GDP growth rate of 9% to 10% successively for three decades to join the league of developed nations. Though growing urbanisation is a major challenge, digitalisation, research and development can take us close to the objective,” Kant said while addressing industrialists at an interactive session at Hotel Marriot here on Friday.

At the session organised by CII, Kant said world is passing through the biggest transformation and India needs to march with the world. Giving example of China, he said its GDP growth rate reached 10% in 1975, which it maintained for 20 years. Kant highlighted following factors that can lead to country’s development.

What is needed for growth?

Rules and regulations: Indian companies are mired in rules and regulations, many of which were scrapped in last three years. Centre has begun to rank states for promoting business. First year, Gujarat was on top, this year Andhra Pradesh has bagged the position. Chhattisgarh, Jharkand and MP need to push up.Global thinking:

• Whatever we do, we must think globally in all aspects. We want to open more markets to bring FDI.
• Promote Start-Ups, innovation: Uber-Ola has shown the power of Start-Ups. Start-Ups, innovation need to be boosted.
• Research and development: 800 MNCs operate in India. Lots of world class companies are brining R&D centres in the country. Philips and John Deer improved their products in India.
• Technology leap: Growing mobile payments, digital transactions, online services, government payments through online in GST is growing. There is need to pace this up especially when India is biggest mobile and app user in the world.
• Urbanisation: Delhi and Mumbai will be slum cities due to growing urbanisation. India needs sustainable urbanisation.
• Gender equality: Only 22% women are contributing in GDP. Men should push women for work.
• SMEs and Exports: Only 18% exports come from SMEs. This pace is slow.

What has India done?

• Structured reform: GST is one of them
• Insolvency and Bankruptcy Code: It will bring financial discipline
•  Direct Benefit Transfer: 500 schemes put under it
•  RERA: Will discipline the real estate sector