Amitabh Kant Projects 30% of Global GDP Growth from India by 2040

Photo Source: Amitabh Kant on X (@amitabhk87)

Amitabh Kant, the G20 Sherpa for India and former CEO of NITI Aayog, spoke at the Confederation of Indian Industry (CII) Business Summit 2024 in New Delhi, laying out an ambitious vision for India’s economic future.

Kant shared his confidence that India would surpass Germany and Japan by 2027 and contribute 30% of global GDP growth between 2035 and 2040.

Structural Reforms and Economic Growth

Kant emphasized the transformative impact of India’s structural reforms, which have propelled the nation from the “fragile five” to the top five global economies. He highlighted India’s recent growth rate of 8.4% over the last three quarters as a testament to these reforms.

“Because India has carried out a huge amount of structural reforms, it has moved from fragile 5 to top 5 and has grown at about 8.4% in the last 3 quarters,” he said.

Global Market Penetration and Quality Focus

Kant urged Indian companies to think globally and focus on quality to penetrate international markets. “Indian companies must start thinking globally to penetrate global markets for accelerated growth. They should also focus on quality,” he stated.

He stressed the importance of enhancing manufacturing size and scale, championing sunrise sectors, exporting, integrating AI, transitioning to clean energy, and prioritizing R&D.

State-Level Growth as a Catalyst

Kant underscored the need for collaboration between the central government and states to foster economic development. He advocated for creating 12-13 “champion states” that could achieve an annual growth rate of 10-11%.

“The government needs to work with the states as we need to look at building 12-13 champion states growing at 10-11% per annum,” he explained. “If states grow, India grows,” he asserted.

He called for a stronger partnership between CII and state governments to streamline processes and facilitate growth. “CII, in the next five years, needs to work closely with the states to making things easier at the state level,” he noted.

Embracing Electric Vehicles and Sustainable Transportation

Kant highlighted the critical need for accelerating the adoption of electric vehicles (EVs) in India, particularly in two-wheelers and three-wheelers, which make up about 75% of the country’s vehicles.

“There is a huge disruption taking place and it’s important that we accelerate the pace of EVs both in two-wheelers and three-wheelers which account for about 75% of our vehicles and the government has already allocated ₹57,613 crore for procuring 10,000 electric buses,” he stated. Future Prospects and Government Initiatives.

Kant forecasted a boom in the manufacturing of electric vehicles and batteries, driven by the Production Linked Incentive (PLI) scheme. “So once that gets accelerated, you’ll see two-wheelers, three-wheeler manufacturing, buses manufacturing,” he said.

He anticipated significant contributions from major companies like Tata, Reliance, Maruti, and Exide in battery manufacturing.

The Road Ahead

In conclusion, Kant stressed that the next five years are crucial for sustaining and accelerating India’s growth trajectory. “A lot of action is underway in the coming five years,” he said.

He encouraged the private sector to take a proactive role in this transformation, emphasizing the importance of leveraging artificial intelligence, advancing clean energy initiatives, and maintaining a strong focus on R&D to ensure long-term success.