Speaking at the World Economic Forum in Davos, the Union Minister said that India is on track to become the world’s third-largest economy, driven by strong growth, infrastructure investment, manufacturing push, and structural reforms
Union Minister Ashwini Vaishnaw speaks at the World Economic Forum. PIC/X
Union Minister Ashwini Vaishnaw on Wednesday, in his address at the World Economic Forum, stressed that India is poised to become the world's third-largest economy in the next few years, driven by a decade of "well thought-through" structural changes and focused execution, news agency ANI reported.
Vaishnaw highlighted a trajectory where the nation is expected to maintain a real growth rate of 6 to 8 per cent.
He attributed this momentum to four strategic pillars: massive public investment in physical, digital, and social infrastructure; inclusive growth ensuring the "entire society grows along with the growth of the country"; a push for manufacturing and innovation; and a rigorous drive toward simplification, ANI reported.
The Union Railway Minister further highlighted, "All this, combined with the base of technology that we have put in, we can very clearly say that India is going to grow with a 95 per cent confidence interval in the next five years,” while adding that security of the poorest comes as a priority.
Supporting Vaishnaw’s view, economist Gita Gopinath pointed out that based on current math relative to other major economies, "India gets there by 2028," and potentially sooner depending on upcoming GDP rebasing, ANI reported.
The economist further emphasised that the true challenge is not just the aggregate size of the economy but also raising per capita incomes to higher levels to meet the 2047 goal of a developed India. While she lauded the "impressive" infrastructure build-out and GST reforms, Gopinath also cautioned that sustaining this momentum requires addressing deep-seated bottlenecks in land, labour, and the judicial system.
Vaishnaw on 'Mountains of debt'
A significant concern raised during the discussion at the World Economic Forum in Davos was the impact of global instability on India's domestic success. Vaishnaw flagged the "mountains of debt" in the rich world as a primary external threat.
"What's really a matter of concern on our mind is the global debt, which is there in the rich world, and how that debt will unravel," he said.
Vaishnaw also warned that if such fiscal instability occurs on a larger scale, the ripple effects on India's growth journey would be a serious matter of concern, despite the country's strong domestic fundamentals and moderate inflation.
(With inputs from ANI)
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