Home / Knowledge / News / Textiles / Indian economy may grow to $7 trn by 2030: Deutsche Bank

Indian economy may grow to $7 trn by 2030: Deutsche Bank

08
Jan '20
Pic: Shutterstock
Pic: Shutterstock
India’s economy is likely to grow two and half times to $7 trillion by 2030 from about $3 trillion now, making India the world’s third largest economy, according to a research report titled ‘Imagine 2030’ by Deutsche Bank, which said this implies nominal gross domestic product (GDP) growth is likely to average just over 10 per cent through the next decade.

The sharp slowdown in recent years, despite Indian economy’s promise over the last decade, is not indicative of what is in the store for the next decade, the bank said.

“Despite its promise over the last decade, the Indian economy has slowed down sharply in recent years. That has led some to predict the decade ahead will be one of lower growth and frustration that India’s enormous potential will, yet again, go unfulfilled," the report said.

As far as India’s economic growth is concerned, it may remain below potential in the near term. However, ongoing government measures will give major push to its potential in the future, it said.

“For starters, to offset the demand slowdown, the government took the bold decision in September (2019) to meaningfully cut the corporate tax rate. This will likely incentivise greater foreign direct investment flow into the country and support private investment in the economy, which has remained weak over the last eight years," the report said.

Additionally, the Reserve Bank of India’s decision to cut the key lending rate by 135 basis points in calendar 2019 will revive growth, it said. “Apart from these stimulus measures, reforms initiated in the last few years, should also improve the medium term outlook," it added.

“As economies with significantly higher informal sector employment, such as India, typically have lower per capita income, policies which are aimed at the greater formalisation of the economy should help to accelerate per capita income levels," the report said.

Reforms such as demonetisation and roll out of the goods and services tax (GST) are likely to play major role in formalisation of the economy and will bear fruits in the next decade, the report said.

While demonetisation has resulted in incentivising a faster pace of digitisation, GST, by the very nature of its design, will expedite formalisation of the economy, and will consequently improve the fiscal and growth dynamics of the country, it added.

Demonetisation and GST apart, India’s bankruptcy law that came into force in 2017 will also help drive growth in the upcoming decade. Even the Reserve Bank’s move to adopt inflation targeting and establish positive real interest rates in the economy will boost growth in the next decade.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Textiles | On 21st Jan 2021

Vietnam's garment-textile sector eyes $39 bn in exports

Vietnam's garment-textile sector has set a target of $39 billion in...

Pic: Shutterstock

Fashion | On 21st Jan 2021

Mila Fashion to open apparel plant in Sri Lanka's Welioya

US-based Mila Fashion, part of the Design Studio Group, recently...

Pic: Citi Trends

Retail | On 21st Jan 2021

Citi Trends to open 100 new stores by fiscal 2023-end

Citi Trends, Inc, a US-based value-priced retailer of fashion...

Interviews View All

Spokesperson, Hugo Boss

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

Textile industry would like to see inclusion of cotton yarn under MEIS and ...

Textile Industry, Head honchos

Textile Industry
Head honchos

Money never disappears-it just finds new opportunities

Marco Girola,

Marco Girola

With its commitment to innovation and deep technical expertise,...

Priyanka Salot,

Priyanka Salot

The Sleep Company was established to upgrade the sleep quality of every...

Ritu Ajbani & Neha Agarwal,

Ritu Ajbani & Neha Agarwal

Petit Royal, co-founded by entrepreneurs <b>Ritu Ajbani and Neha...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


January 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search