Borge Brende, President of the World Economic Forum (WEF), said he is very bullish on India as it has the potential to emerge as a hub of innovation and boost global recovery.
“India has unique skills and a very young population that works in its favour. Now India also needs to build further skills and has to start competing more with the US and China on new technologies like artificial intelligence, data, and digital currency. So, India has to use this unique opportunity to modernise its economy. I am very bullish on India both in the long term and medium term,” he said in an interview given to the Indian media on the sidelines of the WEF’s annual meet in Davos, Switzerland.
The issues to be discussed at Davos include government policies and business strategies against a backdrop of the global pandemic, the war in Ukraine, and geo-economic challenges. More than 50 heads of government or state are attending the annual event.
From India, three Union ministers — Piyush Goyal, Mansukh Mandaviya, and Hardeep Singh Puri — along with several state leaders will be participating in the summit.
Brende said India’s gross domestic product (GDP) is set to grow at 7-8 per cent in the current fiscal, much higher than the global rate of 3.0 per cent. His upbeat outlook for the Indian economy, however, has a caveat.
“Indian economy will probably grow by 7-8 per cent this year. But India is also dependent on the global market for the demand of its products. So, if there is a (global) recession then that will also hit India significantly down the road,” he said.
Brende’s upbeat remarks on India’s growth prospects came as New Delhi pondered spending an additional $26 billion in the 2022/23 fiscal year to cushion consumers from rising prices and fight multi-year high inflation.
According to media reports, the new measures will be double the $13 billion hit government revenues could take from tax cuts on petrol and diesel the finance minister announced on Saturday.
— issacjohn@khaleejtimes.com