NITI Aayog chief executive Amitabh Kant Thursday said that India’s exports need to increase significantly if the country has to become a USD 5-trillion economy by 2025. Kant also noted that the private sector will play a major role in pushing the country’s economy towards the ambitious USD 5-trillion target. “In the last four years, we (Centre) have taken a series of measures to improve our rankings in ease of doing business, along with many structural reforms like Rera, GST and IBC. These measures will make India extremely efficient in the long run,” Kant said at the India Economic Conclave organised by the Times Network here. He, however, noted that to address the real challenge of growing the GDP at 9-10 per cent over the next three decades, India will have to increase its exports.
“No country has grown without exports. Take the example of Japan, Korea and China, which have grown on the back of exports. So, India needs to push for exports, which would require size and scale of manufacturing and penetrating global markets,” he said. Kant further noted that to achieve this, it is necessary to create 100 champion companies like Tata Consultancy Services (TCS), with proper support from the government.
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Speaking at the event, LIC chairman VK Sharma said a robust insurance sector can add 1 per cent to the GDP over the next five years if it grows at an annualised rate of 15 per cent or more. Collectively, the general and life insurance penetration has grown beyond 2 per cent, he said. It can be noted this is still below the global average where the penetration is at 3 per cent or more. Sharma further said that it was necessary to take the insurance industry global to achieve the target.
TCS chief executive officer and managing director Rajesh Gopinathan said that along with the challenges, there are several opportunities as well. “We should not be afraid of having big aspirations and achieving large targets, like becoming a USD 100 billion company,” he said.