Terming India's projected economic growth rate of over 7% for the current fiscal year as amazingly fast, the Asian Development Bank (ADB) Chief Economist Yasuyuki Sawada has said that if this momentum is maintained the size of the Indian economy can double within a decade. He added that gross domestic product (GDP) growth is driven more by domestic consumption than exports. He also said that the country should focus on increasing domestic demand by reducing the income inequality and it shouldn't worry about not achieving 8% growth rate.
ADB Chief Economist has said that 7% growth is a very good number, but as of now, clocking 8% growth is a big challenge for India. Talking about whether export revival would be important for driving the economic growth, he said that half of India's growth is driven by private consumption followed by investment and hence domestic market seems to play a major role in growth.
Sawada further said that inequality and poverty reduction would play a very important role in achieving higher growth because consumption can stimulate more production and that can absorb more employment. He also said that poor people, if their livelihood goes up, can be good consumers. He added that tapping the broadening market will be important to achieve higher growth and the services sector too would play a role in pushing up economic growth.
The ADB has projected India to remain the fastest growing Asian nation with 7.3% growth in 2018-19, and 7.6% growth in 2019-20. Moreover, the Indian economy is forecast to grow at 6.6% in the 2017-18 fiscal ended March 31, slower than 7.1% in 2016-17. Besides, the size of India's economy is about $2.5 trillion currently, making it the sixth largest in the world.