 "India's economic growth rate 'much weaker' than expected, says IMF")
/ -- India became the fifth largest economy of the world, overtaking the UK and is set to become the third largest by 2029. According to the IMF (International Monetary Fund), India is expected to leap further ahead of the UK up to 2027 - making it the fourth largest economy by that time.
The recent geo-political re-alignments coupled with global supply chain issues provide an opportunity for the country to become a global manufacturing hub. Organizations are focusing on de-risking their supply chain dependencies and are exploring newer markets to bolster their manufacturing capabilities. This shift creates a conducive environment for India, which is the most suited candidate to establish itself as the next best destination owing to its strategic geographical location, infrastructure and skilled workforce.
Sharing his views, Alexander Reisch, Managing Director, IPM India,opined, "India is poised to become the preferred destination for manufacturing and is paving its way to becoming an economic superpower over the next 25 years. The nation has taken steps, in the right direction, to ensure that the entire productive ecosystem is well-oiled."
"In a young and growing economy like India, there is an urgent need to increase investments in human development and peripheral infrastructure to capitalize the demographic dividend. Providing the right push will be of utmost importance for the Government to make the country a lucrative global investment destination. India's road to sustainable growth and competitive manufacturing will depend on robust and reliable infrastructure creation. Initiatives such as Make in India, PLI scheme, and use of innovative solutions will lead to productivity-led growth," he added.
India is emerging as the most alluring destination for foreign investments in the manufacturing sector. The country recorded the highest-ever FDI at $83.6 billion. Favorable developments in the domestic manufacturing sector have enabled it to create resilient supply chains, making Indian industries more competitive and boosting the export potential.
Highlighting the importance of start-ups in the economic growth, Mr. Reisch added, "India is the third largest startup ecosystem in the world. There has been a significant increase in the number of start-ups that have entered the coveted billion-dollar unicorn club. Recently, India beat China to add more unicorns in the first half of 2022. Given the sheet size of the nation and untapped potential, India must take a leaf out of developed nations' book and provide the necessary ecosystem to create more wealth creators than job seekers."
As global economic slowdown looms, there is significant uncertainty about the impact it will have on India's growth story. India can withstand the impending global recession, with few hurdles faced due to the larger macroeconomic environment. While this may cause delay, it is without a doubt that India will continue its growth trajectory. The current global geopolitical climate will certainly work in India's favor as it will become the preferred destination for manufacturing, talent, and technological development.
About IPM India Wholesale Trading Private Limited:
IPM India Wholesale Trading Private Limited is a joint venture between Philip Morris Brands Sarl of Switzerland and two Indian entities, Godfrey Phillips India Limited and K.K. Modi Investment & Financial Services Private Limited.
Logo: https://mma.prnewswire.com/media/1798524/Philip_Morris_International_Logo.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
