India's economy to reach $10 trillion by 2030, predicts WEF President; stresses global collaboration amidst challenges
India's potential for exponential economic growth likened to a "snowball effect"
In a significant statement, World Economic Forum (WEF) President Borge Brende has predicted that India's economy will reach the USD 10 trillion mark by the end of this decade. Brende has expressed confidence in the Indian economy's growth trajectory, emphasizing its potential to join the ranks of the world's largest economies.
Speaking to Business Today Executive Director Rahul Kanwal on the sidelines of the 54th annual World Economic Forum (WEF) meeting in Davos, WEF President Brende highlighted India's robust economic performance amidst global slowdown and geopolitical tensions.
"We think, in the coming decade, we can be speaking about a USD 10 trillion economy, at least in the coming two decades," Brende said, reflecting on India's economic prospects. The WEF President acknowledged India's rapid growth in the digital economy, which is expanding twice as fast as the rest of the economy, positioning the nation favourably on the global stage.
The optimism for India's economy is rooted in its significant growth rate, with Brende projecting an 8% growth for the current year. This positive outlook comes despite global trade growth slowing to 0.8% last year from 3.4%. Brende's confidence in the Indian economy is further supported by its resilience in the face of rising oil prices and the ongoing Israel-Hamas conflict, which pose threats to global supply chains and have implications for oil-importing nations like India.
In his interaction with NDTV's Vishnu Som, Brende elaborated on India's potential for exponential economic growth, likening it to a "snowball effect." He emphasized that continued reforms, geopolitical peace, and investments in R&D and infrastructure are key to realizing this ambitious economic goal.
Brende's remarks come at a time when India, currently the world's fifth-largest economy with a GDP of approximately USD 3.7 trillion, is prepared to grow even faster due to its service-oriented economy and the global boom in digital services trade.
Brende also touched upon the global economic scenario, noting that despite slowdowns and geopolitical conflicts dragging down the growth outlook worldwide, there are signs of recovery. He expects the US to avoid a recession and China to regain momentum in the latter part of the year.
The WEF President further discussed the impact of artificial intelligence (AI) on employment, suggesting that while AI may replace some jobs in the short term, it ultimately leads to higher productivity and welfare, which can help in eradicating poverty, particularly in economies like India.
Concluding his insights, Brende stressed the importance of global collaboration and trust-building, especially in a world facing significant geopolitical competition and challenges like pandemics, climate change, and cyber-attacks. The WEF 2024, under the theme of rebuilding trust in a fractured world, underlines the need for such collaboration to address these pressing global issues.