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PwC's mantra for 9% Growth for India

PwC met more than 80 business leaders both in India and abroad, across sectors, to formulate the strategies that can help India boost its growth to an aspirational target of 9 per cent

Published: Nov 24, 2014 04:19:56 PM IST
Updated: Nov 24, 2014 05:56:54 PM IST
PwC's mantra for 9% Growth for India
Image: Amit Verma
Shashank Tripathi, Partner, Leader Strategy Research Practice, PwC India Ltd, presents a report on what it would take for India to create a $10 trillion economy over the next two decades. Also seen at the event in Delhi on Monday are Deepak Kapoor (centre), Chairman, PwC India Ltd, and Dennis Nally, Chairman of PwC International Ltd.

PricewaterhouseCoopers (PwC) India today released a report offering solutions required to grow India’s GDP by 9 per cent per annum and become a US$10 trillion economy by 2034.

The report presents three possible economic growth scenarios for India each depending on different strategies for corporates, entrepreneurs and Government and each reflecting a different focus for investment. The first scenario talks of a 6.6 per cent annual growth in GDP, the second predicts a 7 per cent growth and the most aggressive scenario is a 9 per cent growth. 

PwC began work on this report six months ago, met more than 80 business leaders both in India and abroad, across sectors to understand the strategies that can help India boost its growth from the current five per cent per annum to an aspirational target of 9 per cent. The report studied ten sectors: education, healthcare, agriculture, retail, power, manufacturing, financial services, urbanisation and India’s digital and physical connectivity. Together, these sectors constitute over 70 per cent of India’s GDP. “Our research shows that for India to achieve a 9 per cent growth per annum, substantial and enduring reforms need to be undertaken,” said Deepak Kapoor, Chairman, PwC India at a press conference held in New Delhi to release the report. “We also found that each of the sectors are confronted by challenges that test our capabilities and stretch our limited resources. The sectors need solutions that are resource efficient and environmentally sustainable to help us reach our target of 9 per cent.”

Kapoor said the government has a key role to play by creating national platforms that enable this growth and improving the ease of doing business index. “For instance, immediate changes that could be done are in areas such as ease in starting a company and in paying taxes,” he said.

Dennis Nally, Chairman, PricewaterhouseCoopers International Ltd, said it was now or never for India to reach the 9 per cent GDP growth rate. “A young demographic paired with a burgeoning middle-class that is digitally enabled is a once in a lifetime opportunity for India to develop economically and socially” he said. “It is the youth that will power India’s growth both in the short term and in the long term.”

Nally added that international investors will play a key role in helping India reach the aspirational target of 9 per cent growth. “India needs to increase foreign investment in India every year by six fold in dollar terms. While India has a high savings rate, this cannot increase without foreign investment.”

Nally also called for an improved business environment. “Our report suggests a series of administrative and structural changes such as procedural simplification which we believe can benefit and improve India’s international ranking, address concerns of international investors and turbo charge FDI that is required in India.”

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  • Rakesh

    India\'s GDP of 9 per cent per annum has now become aggressive which once was easily achieved by India few years back. If it was possible then, it is possible now!

    on Nov 26, 2014
  • Lokesh Arora

    9% is definitely way too aggressive. The point here not being that India doesn\'t have the potential, but that we are a democracy. Just like everything has its pros and cons, democracy is no different. In democracy, government can\'t bring in changes in a sudden manner. Everything will happen in a very slow and gradual manner. The reforms (FDI in Insurance, GST, Amendment in Land Acquisition Bill) are the most key reforms needed to spur the growth, but considering the lack of majority and support for the ruling government in the Rajya Sabha, it is going to be an uphill task. If things go through perfectly well in this winter session we can expect a growth rate of 6-7%, but on the downside if these reforms get stalled investor\'s sentiment will be weakened and we might see some outflow of money from India.

    on Nov 25, 2014