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India’s Growth Story: A Vision for Robust Economic Expansion in FY25

India’s Growth Story: A Vision for Robust Economic Expansion in FY25
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India’s Growth Story: A Vision for Robust Economic Expansion in FY25

The Indian economy is poised for a remarkable growth trajectory in the fiscal year 2024-25, with the Confederation of Indian Industry (CII) projecting an impressive 8% growth rate. This optimism is rooted in the expectation that next-generation reforms will be carried forward in a mission-mode. The newly elected President of CII, Mr. Sanjiv Puri during his inaugural media address, highlighted the robust outlook of the Indian economy marking the fourth consecutive year of 7%+ growth.

Driving Factors for Economic Growth

Mr. Puri attributed this anticipated growth to several critical factors. Key among these is the successful implementation of unfinished reform agendas, improved global trade prospects boosting exports, and the robust performance of investment and consumption sectors. A normal monsoon and favorable geo-economic conditions are also expected to play significant roles.

Thesix primary growth drivers:

  1. Private Sector Investment: The private sector’s active participation in India’s growth story.
  2. Public Investment: Significant investments in physical and digital infrastructure by the government.
  3. Banking System: A well-capitalized banking sector supporting economic activities.
  4. Capital Markets: Booming capital markets reflecting investor confidence.
  5. Reduced Oil Dependence: Strategic moves to lessen reliance on oil.
  6. Geo-economic Conditions: Favorable international economic conditions aiding growth.

14-Point Agenda for Economic Transformation

To solidify this growth momentum via an important policy update, Mr. Puri outlined a comprehensive 14-point agenda for the new government:

  1. Next-Generation Reforms: Establishing inter-state institutional platforms akin to the GST Council to build consensus for state and concurrent domain reforms.
  2. 2.Capex-led Growth and Fiscal Consolidation: Utilizing part of the Rs 2.1 lakh crore RBI windfall dividend to increase capital expenditure by 25% in FY25.
  3. Human Capital Development: Prioritizing public health and education expenditure, aiming for 3% and 6% of GDP, respectively, by 2030.
  4. Employment Generation: Launching Employment Linked Incentive (ELI) schemes for labor-intensive sectors and creating an International Mobility Authority to track global employment opportunities.
  5. Ease of Doing Business: Simplifying regulations, reducing compliance burdens, and enhancing the competitiveness of Indian industries.
  6. Technology and Innovation: Expediting the operationalization of the Rs 1 lakh crore fund for private sector R&D.
  7. Global Trade Engagement: Establishing a Global Trade Promotion Body and enhancing market access through better standards and technical regulations.
  8. Green Growth: Formulating action plans for climate change, including decarbonization and water security initiatives.
  9. Financial Sector Expansion: Privatizing two public sector banks, diversifying NBFC funding sources, and encouraging long-term infrastructure funding.
  10. Tax Reforms: Rationalizing capital gains tax, TDS provisions, and continuing GST reforms.
  11. Agriculture and Rural Development: Creating an Inter State Agri Reform Council and focusing on agri-export policies and rural industrial development.
  12. Tourism: Accelerating the National Tourism Policy and launching “Incredible India 3.0” to promote tourism.
  13. Start-up Ecosystem: Developing physical and digital infrastructure for start-ups, especially in Tier 2/3 cities.
  14. Building Trust: Moving towards transparent, faceless, digital systems for approvals and appeals.

CII’s Theme and Missions for 2024-25

CII has identified “Globally Competitive India: Partnerships for Sustainable and Inclusive Growth” as its theme for 2024-25. Several new missions have been planned, including initiatives on Climate Adaptation, Health for All, Responsible AI, and Digital for Social Good. Additionally, new initiatives such as the CII Alternative Dispute Resolution Centre and Centre of Excellence on Employment & Livelihood and the Centre of Excellence on Skills will further bolster India’s growth journey.

In conclusion, with these strategic initiatives and robust growth drivers, India is well on its way to achieving a strong and resilient economy. The foundation laid today will undoubtedly pave the way for a prosperous India@100, solidifying its position as a global economic powerhouse.

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