Union Finance Minister Nirmala Sitharaman highlighted consumption’s pivotal role in the country’s economy. | File Photo
Union Finance Minister Nirmala Sitharaman has expressed confidence in the nation’s economic growth, forecasting a significant rise in per capita income over the next five years.
Speaking at the Kautilya Economic Conclave, she projected that India’s per capita income would grow by an additional $2,000 in the coming half-decade. Sitharaman noted that while it took the country 75 years to achieve a per capita income of $2,730, the next leap is expected to happen at a much faster pace.
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Youth, consumption to drive growth
Sitharaman highlighted consumption’s pivotal role in the country’s economy, as it makes up over 60 per cent of India’s GDP. She pointed out the importance of India’s youthful population, with nearly 43 per cent being under 24 years old, calling it a key factor for driving organic consumption growth.
In her remarks, she also praised India’s financial system, asserting that it now competes on par with global markets. She stressed the importance of ensuring the younger generation is nurtured both mentally and physically to contribute to the country’s economic future. Drawing a comparison to China, she noted how its growth benefitted from a favourable global trade and investment environment.
The finance minister’s speech conveyed optimism about India’s capacity for sustained economic growth, driven by innovation and a strong financial structure.
‘Faring better than other nations’
Earlier, the finance minister had remarked that India stands out globally for its economic performance and will continue to do so in the coming years. “We are faring much better than many other nations, even those considered advanced. Today, they are struggling to grow,” she stated. “We are distinguishing ourselves as the fastest-growing economy in recent years, including this year and for the foreseeable future.”
It is worth mentioning here that India’s economy grew by 8.2 per cent in 2023-24. Meanwhile, the Economic Survey 2023-24, presented in Parliament in July, forecasts growth between 6.5 per cent and 7 per cent for the current fiscal year.
First Published: Oct 04 2024 | 12:05 PM IST
