Reserve Bank of India Deputy Governor Michael Patra said that India has a window of opportunity in terms of demographic advantage, ability to boost manufacturing, increase in export value as well as internalisation.
Reserve Bank of India Deputy Governor Michael Patra said that India has a window of opportunity in terms of demographic advantage, ability to boost manufacturing, increase in export value as well as internalisation.
Reserve Bank of India Deputy Governor Michael Patra said on 13 August that India could “turn the time” in the next decade and grow by 11% if it reaps the demographic dividend, and boosts manufacturing, as well as exports. growth rate can be reached.
India has window of opportunity in terms of its demographic advantage, ability to boost manufacturing, increase in export value as well as internalisation, Mr Patra said in a speech to celebrate ‘Azadi Ka Amrit Mahotsav’ organized by Reserve Bank of India Giving said. , Bhubaneswar.
Patra said that if India seizes its opportunities and overcomes challenges, it is widely believed that India will “turn the times”. It is possible to imagine that “India is moving ahead with a growth rate of 11 per cent in the next decade”.
If this is achieved, India will become the world’s second largest economy not by 2048 but by 2031, he said.
With a population of 1.38 billion, India is the youngest country in the world at 28.4 years old. He said that by 2023 India will be the most populous country in the world with 1.43 billion.
Comparing the proportion of working age population, he said that India is in an advantageous position as compared to countries like China, Brazil, USA and Japan as the working age population of these countries has already started declining.
Whereas India’s working age population ratio will increase by 2045, which will be even higher than China by 2030.
“Making the most of this demographic dividend is an opportunity as well as a challenge for India,” said Mr. Patra.
Talking about India’s manufacturing capacity, he said that it is another engine to accelerate India’s economic growth.
Stating that strong growth of manufacturing is essential to boost exports, he said, it is imperative to reverse the conventional wisdom and align with other major manufacturers of the world.
To achieve this, he said, three things are necessary. Firstly the manufacturing sector must adapt to the Fourth Industrial Revolution through automation; data exchange; cyber-physical systems; Internet of Things; cloud computing; cognitive computing; Smart Factory; and advanced robotics.
Second, India should develop a skilled labor force by increasing investment in human capital and third, efforts should be directed towards promoting international competitiveness.
“For India to become a global manufacturing hub, the share of manufacturing must increase to at least 25 per cent of GDP.” In terms of exports, Shri Patra said that this is an opportunity to expand markets and production capacities beyond national borders.
With exports of goods and services currently worth $800 billion, which is about 2.7% of the world’s total exports, he said if India can achieve the $1 trillion target set by the government by 2030, it will India’s share may increase to 5%. export.
He said that this will make India a superpower of exports. Several initiatives have been taken to realize this and increasing India’s share in world exports to at least 5% is within reach.
On “internationalisation”, he said that Indians are among the most internationalized people in the world.
The Indian diaspora is the largest in the world and India is the top recipient of remittances. The Indian rupee is traded three times more offshore than onshore. Yet we still talk of internationalization as if it is the last frontier.”
“If the INR (Indian Rupee) turnover becomes equal to the share of non-US non-Euro currencies in global foreign exchange turnover (4 per cent), then the INR will come in as an international currency, representing India’s contribution to the global economy. reflects the situation,” Mr Patra said.
However, he said that there are challenges in terms of compensating the loss of production and livelihood due to the pandemic and it will take many years to recover from this loss.
Among others, the country faces challenges such as lack of infrastructure in terms of low per capital investment in infrastructure construction as well as lack of high-quality labor force.