15.11.15

India can achieve the magic 10% GDP growth mark.

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If only people would stop talking about the Chinese economy slowing down.

Its $18 trillion PPP GDP is still growing by 7%, which is about $1260 billion.(If thats a sure sign of an economy slowing down......then I'm a banana...)

India needs to overcome psychological perceptions about FDI, service sector will solve everything...and consumption.

India can break from 8% growth to 10%....if only the government spends more on Industry and Infrastructure....clears more projects quickly, and makes it easier to do business inside India.

There is an enormous demand and space for development and 10% GDP growth given the backwardness and poverty of the country.

To sustain this growth, the Indian government would have to ensure that the benefits of the development benefits all....otherwise the elite, crony capitalist class will merely stash their loot in foreign banks or even inside India...whereas the poorer classes will obviously spend more (greater consumption).......a problem in China.

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India needs to aim for 9-10% growth: Jaitley


By Times of India

Finance minister Arun Jaitley on Saturday said India needs to aim for 9-10% growth to create capacity in manufacturing and services sector to absorb 20% of the population presently engaged in agriculture.

According to Jaitley, the savings from the drop in global oil and commodity prices provides an opportunity to give the additional push to infrastructure.

Speaking at an event organized by the Confederate of Real Estate Developers Association of India on, Jaitley said that a silent revolution was taking place in the form of suburbanization.  

"The whole idea of suburbanization was that around cities big and small, the real estate industry had started buying land and developing affordable housing where aspirational youth and families from rural areas were going to migrate."

The finance minister said that although agriculture contributed only 15% to the economy, 55% of Indians were dependent on it for living.

He said that education and the spread of electronic and digital media were increasing the aspiration of people in rural areas, for whom new cities and new suburbs were the destination.

"We need, therefore, to make sure that our economy grows and gets out of the slowdown situation which it was in a couple of years ago," said Jaitley.

The finance minister said that the government had moved ahead on addressing problems of the steel sector and got highway projects moving. The next area of focus would be the power sector.

Pointing out that problems for the power sector stemmed from the failure of distribution companies (discoms) to charge market rates, Jaitley said, "Banks cannot indefinitely fund state discoms for their political reasons. Not only do discoms owe money, the power producers also face stress because nobody is willing to buy power."