India’s Growth Imperative: 10% Nominal GDP Needed Annually to Realize Viksit Bharat Vision by 2047

Image Source : The Economic Times

India must sustain an average nominal GDP growth rate of 10 percent annually to achieve its ambitious Viksit Bharat goal by 2047, according to Confederation of Indian Industry (CII) President Rajiv Memani. The statement comes amid a backdrop of global economic uncertainty and renewed focus on structural reforms, trade expansion, and institutional resilience.

Key Highlights from CII’s Economic Outlook

- Rajiv Memani emphasized that nominal GDP, which measures the total value of goods and services at current market prices without adjusting for inflation, must grow at 10 percent annually to meet the Viksit Bharat target
- India’s current GDP growth projection for FY26 stands at 6.5 percent, as retained by the Reserve Bank of India
- The CII expects growth in the 6.4 to 6.7 percent range for the current fiscal, driven by strong domestic demand and macroeconomic stability

Trade and Investment: Unlocking Global Opportunities

- Memani highlighted the upcoming interim trade pact between India and the United States as a key enabler for market access, especially for labor-intensive sectors
- The agreement is expected to reduce uncertainty, facilitate technology transfers, and promote joint ventures and cross-border partnerships
- CII believes that leveraging free trade agreements with the US, EU, and UK will be crucial to sustaining long-term growth momentum

Structural Reforms and Fiscal Strategy

- The CII president called for next-generation reforms to enhance competitiveness, including GST rationalization and improved input credit mechanisms
- He proposed the establishment of state fiscal councils to independently assess budgets, debt sustainability, and fiscal risks
- A calibrated disinvestment strategy was also recommended, with potential proceeds from public sector equity sales earmarked for infrastructure, debt reduction, and a sovereign wealth fund

Institutional Strength and Economic Resilience

- Memani noted that India’s capital markets, banking system, and corporate balance sheets are in robust shape, providing a strong foundation for growth
- He stressed that India’s macroeconomic position remains stable despite global headwinds, with domestic consumption acting as a key buffer
- The CII reaffirmed its commitment to working with the government and industry to foster innovation, trust, and global competitiveness

Looking Ahead

- Achieving the Viksit Bharat vision will require not just high growth but inclusive, sustainable, and innovation-led development
- The CII’s roadmap underscores the importance of policy continuity, institutional reform, and global integration as India charts its path to becoming a developed economy by 2047

Sources: Economic Times, Business Standard, Rediff Money, Devdiscourse, Fortune India, PTI