India has the potential to achieve an impressive growth rate of 8 per cent, but to realise this ambitious goal, the country must undertake new reforms every year, said Borge Brende, the President of the World Economic Forum. He was speaking at the second edition of the BT India@100 Summit in New Delhi on Saturday at a session titled ‘Why the World Bets On India?’. The event is centred around India’s rising influence on the global economic stage.
Highlighting India’s demographic advantage, Brende identified it as a significant positive factor that could drive the nation’s growth for the next four decades. He emphasised on the importance of a digitally connected and skilled workforce to fully capitalise on this demographic dividend.
He said that for this vision to materialise, the Indian government must refrain from complacency and instead remain committed to enacting reforms. Investments in infrastructure and research and development are equally vital components of this growth strategy, he added.
Brende said that sustaining an 8 per cent growth rate hinges on India’s commitment to enacting consistent reforms year after year.
Brende also lauded India’s remarkable recovery from the Covid-19 pandemic, noting that the country emerged in a stronger economic position compared to many others. “For three consecutive years, India has maintained its position as the fastest-growing economy,” he said.
Looking ahead, he said, analysts at the World Economic Forum foresee India’s ascent to becoming the third-largest economy within a couple of years. Moreover, Brende predicted a shifting global landscape, where the United States, China, and India—termed the G3—will wield significant influence. India’s role as a major player in shaping the new global order cannot be understated, he emphasised, noting its substantial influence as a pivotal global swing state.
He highlighted that the stage is set for India to play an increasingly prominent role on the world economic platform, with its demographic advantage and potential contributions to the global order being closely watched by the international community.
“India has a demographic dividend which is a huge positive for the next 40 years as there will be no shortage of workforce, and if the workforce is digitally connected, and no host to operate, there is a huge opportunity,” he said.
Embracing new technologies and harnessing the power of big data, India has the capability to lead the charge in the fourth industrial revolution, Brende said.
“For that, the government has to not get complacent, and continue with reforms. It has to invest in infra, R&D as well,” said Brende.
Discussing the prevailing global economic landscape, Brende pointed out: “Historically, trade has been a key driver of global growth. However, the possibility of decoupling between economies could result in an 8-10% reduction in global GDP.” The ongoing global trade tensions and geopolitical uncertainties prompted him to view these developments as a potential risk.
Talking about the impact of ongoing conflicts, he expressed hope for a swift resolution while acknowledging the multi-faceted implications these conflicts entail. “While the uncertainties surrounding various conflicts pose risks, they also present an opportunity for innovative solutions in the coming year,” Brende said.
Brende also cautioned that unchecked deployment of artificial intelligence in the wrong hands could lead to adverse effects on various systems. He emphasised on the importance of responsible and controlled AI implementation.
Source : BusinessToday
