India should aim for 10% economic growth, says Amitabh Kant

India should aim to register around 10% economic growth over the next three decades to become a $35 trillion economy, said India’s G20 Sherpa Amitabh Kant.

Addressing the CII Southern Region Annual regional meeting on Thursday, Kant said, “We have to accelerate the pace of economic growth in the 9-10% range.”

The former CEO of NITI Aayog remarked that the compounding effect of around 10% growth will also have an impact on the per capita income of the country to reach a level of $23,000-24,000 from the current level of around $2,700.

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He cited the examples of countries like Japan, South Korea, China, and Singapore, which sustained an economic growth of around 10% for a three decade period.

Kant felt that this economic growth is possible only if the country fires on all cylinders and not just depend on the services segment. This would require higher output from the manufacturing front and better productivity in the agriculture sector.

The G20 Sherpa also brought home the point that India needs to increase its share in global trade from the current level of 2.5% to 5%, and this could be achieved largely from the manufacturing segment.

Kant said the country has all the ingredients like a large number of working age population, digital infrastructure, increased urbanisation to become one of the leading economies in the world.

He called upon the state governments to undertake radical reforms to ensure there is high growth in the economy.

“India is poised to grow on back of private sector capital expenditure, which will unleash itself for the next 10 years,” he remarked.