“While the Indian economy today, with a size of about US$3.2 trillion and the fifth largest in the world, presents significant potential and opportunities to move up the ladder to be top three in the world, its realisation would depend essentially on four metrics - our economic performance in terms of absolute GDP and absolute per capita income instead of the PPP comparison and getting better on the two profit and loss accounts namely current account and fiscal management," he said while speaking at the CII Global Economic Policy Summit 2022 held at New Delhi today.
To develop world class Indian companies, Kotak stressed on the need to build scale in manufacturing based on cutting edge product innovation and developing IP rights rather than depending on arbitrage alone to secure an advantage.
During the discussion, Kotak also mentioned, as an aside, that the interest rate trajectory in India would depend more on the signals provided by the US Fed.
While articulating his views, Sanjiv Bajaj, President, CII said that ‘Credit needs to be given to the government for continuous and consistent investment from their side in public infrastructure, which has really helped us over the last few years’.
While the aspect of developing new manufacturing capacities holds promise, its realisation would depend on execution of policies, stated Bajaj.
He further eluded to four broad areas--namely aligning industry and trade policies, building a strong financial sector to support the real economy, augmenting education and healthcare expenditure to build people capacity, and expanding the share of manufacturing by expanding the PLI in labour intensive areas which would accelerate our journey towards a US$40 trillion economy.
He also referred to coordination between the centre and states for building a consensus on policies.
