Goldman Sachs has forecasted that India's economic growth can happen at 8% over 2016-20. It expects India's GDP
to jump by 7.5% in FY'16. The reason is primarily attributed to the
ease of conducting business and gains from higher education and technology convergence.
"A convergence of technology, gains in education, and improving ease of
doing business due to less red tape ("TEE"s) could be the key drivers
of growth, in our view, " Tushar Poddar, chief India economist, Goldman Sachs said.
Sachs has said that by 2020 the country's economy has the potential to gain over 300 million more internet
users and 50 million more high-school graduates. It has already been
adding over 200 thousand bank accounts every day, and nearly 800
government services have moved online. At this pace the country can use
its strength in the services sector.
After all, unlike most Asian countries India's potential is in it's services sector.
(No, Not true.....The service sector can help India grow for a short while at 8%, BUT ultimately as with China, with a GDP THE SIZE OF INDIA, and still growing the real long term engine factors for growth will be investment in INFRASTRUCTURE AND INDUSTRY mobilized by the central government.......that's where the extra jobs will come from when the stampede from rural to urban migration accelerates)
"Our analysis shows that services have tended to be a much larger
source of jobs in EMs compared to manufacturing. Over the next few
years, large scale capacity expansion in manufacturing may be
constrained due to weak global demand, as well as local impediments.
Services are hence likely to drive economic growth and jobs, and this
can play to India's strengths "stated the report released on Monday.