Bridging the rural-urban divide, investments in housing, water, etc, support for start-ups and MSMEs, and skilling the workforce are the fields that are poised to give a boost to the economy.
The path for India to become a USD 5 trillion economy has pebbles and thorns. However, there are opportunities that India can tap to reach the ambitious milestone. A KPMG report underlines the areas where India can step forward to a leap. Bridging the rural-urban divide, investments in housing, water, etc, support for start-ups and MSMEs, and skilling the workforce are the fields that are poised to give a boost to the economy, going by the report. Despite the global uncertainties, the firm remains optimistic for the medium to long-term outlook for India, mainly driven by the political stability, investment in infrastructure and intent of the government for reform.
“For Indian economy to truly progress and evolve, a collaborative, flourishing and congruent ecosystem and framework have to be built as well as maintained to usher the country into a world of numerous opportunities,” said Akhil Bansal, Deputy CEO, KPMG. The country is at an inflection point where political stability, supportive demographics, technological leaps and enlightened policymaking converge are conducive for growth, he added.
- Inclusive economic growth and the rise in employment is possible if start-ups and MSMEs are promoted, though it requires reskilling the manpower to get accustomed to the new technology.
- Support in land acquisition, budgetary grants and favourable PPP policies by the government can also play an important role to boost the growth in businesses.
- The report suggests it critical for sustainable development to embed climate resilience while planning long-term projects.
- Farm mechanisation, farm management, crop forecasting techniques, and other data analytics and AI methods can take agriculture to the new level, benefiting a major segment of the workforce.
Healthcare, education, power and energy, tourism and financial services are the other areas where the report suggests a possibility of propulsion. “The outcome of reforms is getting more pronounced and key economic parameters are likely to reflect positive changes over time. This will largely depend on the development across key sectors such as construction, healthcare, education, agriculture and infrastructure,” said Nilaya Varma, Partner and Leader – Market Enablement, KPMG.
Meanwhile, the Modi-led government has set up a target of making India a USD 5 trillion economy by 2024. Further to give focused attention to issues of growth, the government has constituted a five-member cabinet committee on investment and growth, chaired by the Prime Minister.