In a recent statement, the World Economic Forum (WEF) President and CEO Borge Brende predicted that India's growth has the potential to reach 7-8% with the help of reforms.
At Davos every year, India has had a significant presence among some of the world's biggest leaders and thinkers, where one of the primary themes has been growth. This annual event is conducted by the WEF.
In his latest assessment, Borge Brende spoke about India, saying, "India has great potential, and it is still growing pretty well—6% this year. But there is no reason why India cannot pick up again and achieve 7% or 8%, provided that there are reforms in investments, infrastructure, and in investing in education and R&D [research and development]."
"We do expect that in a few years, India will account for 20% of the overall global growth. That is quite incredible. What works in India's favour is the enormous strength of startups. There are more than 120,000 startups in India, and more than 120 unicorns. So, that ecosystem is, I think, the basis for future growth," he added.
When asked whether India's aim of becoming a developed nation by 2047 is achievable, Mr. Brende opined that India will soon become a $10 trillion economy. What also works in India's favour is that trade is now pivoting more towards digital trade and services, according to the WEF president.
"That's growing three times faster than traditional goods. And these are areas where India is very strong," he commented.
Regarding some of the key challenges or opportunities that come with greater digitalization of the workforce, Mr. Brende said, "It's increased productivity. And productivity means producing more with fewer resources. Of course, this will challenge some jobs that are in back offices today or other sectors. But if that leads to people moving into areas where they produce higher up in the value chain, they can earn better wages and produce more. And that's prosperity."
"For India, there are huge opportunities when it comes to new technologies. But in the short term, it also creates challenges because one has to upskill and reskill people," the WEF president said.
The five-day meeting at Davos began on Monday, January 20th. The high-profile meeting will explore how to relaunch growth, harness new technologies, and strengthen social and economic resilience. Nearly 3,000 leaders from over 130 countries, including 350 governmental leaders, are expected to participate.
India’s participation at Davos aims to strengthen partnerships, attract investment, and position the country as a global leader in sustainable development and technological innovation. Five Union ministers of India, three chief ministers, and ministers from several other states will attend the WEF this time.
Also Read: Optimistic Outlook for Indian Economy, Survey Finds Strong Private Investment Prospects