India needs sustained 8% growth to go past China as global economy driver: Barclays
Indian economy to grow at 6.5% real GDP for FY24: Finance Ministry Highlighting the capacity constraints in traditional areas of investment, Bajoria said that these sectors require a higher degree of investment, including from the government. Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! In the period between 2005-10, the Indian economy had grown at an average of around 8 percent.
The rate could be matched again following the Lok Sabha elections next year if the government sets the target, Barclays had suggested in another report last month. However, the focus should also be on maintaining macroeconomic stability.
On the basis of the International Monetary Fund (IMF) figures, Barclays said that China's contributions would account for an estimated 26 percent of the global GDP in the five-year period leading up to 2028. In the same period, India's contribution would be around 16 percent if the domestic growth rate remains at an average of 6.1 percent, it added, further pointing out that the gap with China could be narrowed if the Indian economy starts growing at 8 percent.
Meanwhile, the IMF, in its World Economic Outlook (WEO) report released on October 10, raised the FY24 growth forecast for India from 6.1 percent to 6.3 percent. The upward revision reflects the “stronger-than-expected consumption during April-June", it said."Exciting news! Mint is now on WhatsApp Channels
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