Strong macroeconomic fundamentals has put India on a growth ped
19 April 2018: India today is well on its way towards becoming a nation with sustainable growth. Aimed at apprising investors about the attractive propositions that recent structural changes have brought forth, KPMG in India, today launched a report titled – “India soars higher” at the 12th edition of Mindmine Summit 2018. The report was launched by the chief guest Mr. Ravi Shankar Prasad, Minister of Law and Justice, Electronics and Information Technology, Government of India. Other prominent dignitaries present were Mr. Sunil Kant Munjal, Chairman, Hero Enterprise, Mr. Suman Kant Munjal, Chairman & Managing Director, Rockman Industries and Mr. Akhil Bansal, Deputy CEO, KPMG in India. The report provides insights into the rapidly changing business outlook for India.
The report highlights India’s resolve to achieve fiscal consolidation, complemented with aggressive and not purely populist measures. With the economy likely to grow at 7.4 per cent in 2018, higher than the advanced economies and the world, i.e., 2 per cent and 3 per cent, respectively. India has been recording the highest growth rate amongst the Brazil, Russia, India, China and South Africa (BRICS) economies. India’s economic stability is further reinforced with its approximately USD420 billion(as on 09 February 2018) foreign exchange reserves which provides sufficient cover for almost 11 months of imports for India. The report also analyses the progress achieved under several national priority programmes.
Arun M Kumar, Chairman& CEO, KPMG in India said, “India today is moving towards a period of sustained growth. Reforms such as the bankruptcy code and the Goods and Services Tax and a keen focus on investments in infrastructure are important elements of the foundation for such growth. Rising aspirations, the country’s young demographics and a vibrant consumer market will make India an increasingly important business and investment destination.”
Akhil Bansal, Deputy CEO, KPMG in India said, “These are exciting times for India. India today is setting an example, not just for developing economies, but also developed ones. The CEOs I speak with are interested in India and are of the belief that the country is well on its way towards becoming one of the world’s leading investment and business destinations. There are strong signals about India’s commitment to growth and there’s hope that the Government will continue to implement the reforms needed to deliver it.”
The next phase of growth in the domestic market, consumer confidence, stability in the macroeconomic fundamentals, structural reforms and flagship initiatives introduced by the Indian government, have now started to gain momentum. While some reforms may still be classified as an ‘unfinished agenda’, a significant volume of work has already been undertaken towards the completion of these tasks, in terms of a conducive policy environment as well as on-the-ground effort. This report focuses on the major flagship initiatives that hold the potential to have a transformational impact on the Indian economy and accelerate India’s growth rate.
While the Indian economy is at a strong place, the report also points out certain imperatives for India to sustain its growth from finding ways to increasing exports, bringing in policy changes with regards to slow labour reforms and making India a global manufacturing hub.