Kolkata: India may expect double-digit growth in FY2022. Deloitte global chief Punit Renjen is very bullish about India’s future and economic potential.
According to Deloitte India’s forecast, India may expect double-digit growth in FY2022. This is due to various factors like – Pent up consumer demand; widespread vaccine deployment; improved consumer and business confidence; increased government spending, sufficient liquidity and reforms undertaken by the government.
Even before the pandemic, many were predicting “Indian Century” given the central role India is playing in developing the technologies of tomorrow, its large domestic market and its contributions to the global economy. India has capitalized on its incredible wealth of raw talent. IT services companies and the Global Capability Centres in India– run by skilled Indian technicians – ensure global operations not only run seamlessly but step up with digital, cybersecurity and analytics to drive value. In a grim year, this truly illustrates the value of a dependable business partner with a global enterprise.
In the next decade, India will have the highest population of young people in the world – will they have the skills to lead the economy forward? And how is India preparing for the same? Jobs of tomorrow will focus on technologies like AI, Cloud, and Cyber – new skills will be required.
Path forward is clear – to attract foreign investment and avoid greater economic inequality, India must maximize the potential of young talent, create universal access to quality education. India’s National Education Policy is a powerful start. And with foreign investment, there are great opportunities to create jobs in the country’s food processing, pharmaceutical, defence, space, textile, and electronic sectors.
Newmarket reform laws, passed during the pandemic, are also a necessary and laudatory step forward. So too are reforms to the operating protocols for prospective FDI and the recent broadening of the Product Linked Incentive schemes. By continuing on this path, harnessing the Biden administration’s commitment to a cooperative global economy, and broadening the “Make in India” program, – to be more self-reliant (or Atmanirbhar), India has a real opportunity to continue to uplift its economy.
Deloitte is working with India for realizing the Prime Minister’s goal of achieving $5 trillion GDP. This ambition is only achievable with the support of leading services firms (and other agencies) providing the processes and systems to build and sustain a maturing economy. Critical is foreign direct investment and new technologies, for which India is the last large untapped prospective economy.
Foreign companies typically depend on the Big Four for the trade facilitation and due diligence that contributes to decisions on FDI. Foreign investors and their advisors play a key role in selling the India story abroad, providing confidence and reassurance to other investors.
The good news is that CEOs in the United States and elsewhere are already near unanimous in their belief in India’s future and are eager to invest in its people, productive capacities, and promise CEOs.
Over the past few months, Deloitte have spoken to more than 100 CEOs on various issues, including supply chains and manufacturing footprint. And all are factoring India into their growth plans.