Ace investor Porinju Veliyath has always been bullish on India’s growth prospects and says that India can be compared to a mega-cap in terms of demography. However, Porinju says that it’s disturbing to see the low per capita GDP in the country. “Demographically, India is a mega-cap, economically we look at the economic GDP, India is a beautiful midcap with huge potential. Looking at the market cap, we are a small-cap, and looking at the per capita income of India, we are a penny-cap. It is pathetic, we are just $1,800 GDP per capita whereas China is at $8,500 million,” Porinju Veliyath told CNBC TV18.
Porinju Veliyath says that India need not benchmark with China, but should look to improve it’s per capita GDP. “It is not about catching up with China, or China is a benchmark, we don’t need that, but we cannot remain as a penny-cap in the per capita income. So this is definitely going to change,” he told the channel. Just last month, top banker Uday Kotak said that India will match a five times bigger China in terms of GDP per capita in the next twenty years.
“I think it is doable. In addition to the hard stuff, India needs to do a lot of the soft stuff,” Uday Kotak told CNBC TV18 on the sidelines of an event. “If I look at China and India, in the last 20 years, India has grown at 5.5%, and our per capita GDP is at about $1,800. China is about 5 times our size. India needs to grow at about 8% per annum in per capita GDP for the next 20 years to reach China’s level. If you take a population growth of 1-1.2%, for the next 20 years we must grow at 9% to reach the current GDP of China,” Uday Kotak said, laying threadbare the hard work required to get there.
Speaking at the Hindustan Leadership Summit held earlier this month, Asia’s richest man and Reliance Industries Chairman Mukesh Ambani said, “Today, I wish to make a prediction. By the middle of the 21st century, India’s rise will be higher than China’s and more attractive to the world,” Further, the Head of India’s most valued company said that India’s economy will quadruple to $10 trillion by 2030. He also laid down the driving factors which will help India to achieve this unique feat. Taking note of India’s growth, Mukesh Ambani said, “India was a $500 billion economy just 134 years ago. Today, India’s GDP is $2.5 trillion, and the country is ranked sixth in the world. To me, there is nothing surprising about the rise.”