India needs 10% nominal GDP growth for 'Viksit Bharat': CII
What's the story
India will need a 10% average nominal GDP growth rate every year to achieve the government's vision of a 'Viksit Bharat' by 2047, said Rajiv Memani, President of the Confederation of Indian Industry (CII). In an interview with PTI, Memani stressed that this level of growth is essential for realizing India's long-term development goals.
Trade impact
Interim trade pact with US important: Memani
Memani also emphasized the importance of an interim trade pact between India and the US. He said that once finalized, it would eliminate uncertainty and open up a larger market for Indian companies, especially those in labor-intensive sectors. The CII President believes this deal will also facilitate technology transfers and encourage more joint ventures and partnerships between the two nations.
Growth projection
CII's GDP growth projection for FY24
Despite geopolitical uncertainties, CII expects India's economy to grow by 6.4-6.7% this fiscal year, driven by strong domestic demand. Memani said that India is in a "very good position macro economically," with stable institutions such as capital markets and banks. He also noted that corporate balance sheets are looking stronger, further indicating a positive economic outlook for the country in the near future.
Stability assurance
RBI maintains GDP growth projection at 6.5%
The Reserve Bank of India (RBI) has also maintained its GDP growth projection for the current fiscal year ending March 2026 at 6.5%. The central bank said that India's economy presents a picture of strength, stability, and opportunity amid global uncertainty. This is in line with Memani's optimistic outlook on India's economic prospects and the stability of its institutions.