India’s economy may see 6-7 per cent growth from the next year for some time before kicking on again. However, for the moment, the government’s target of making India a $5-trillion economy by 2025 looks improbable and difficult because to get there, the economy will need to grow by more than 13 per cent in each of the next four years. But miracles are known to happen. The key to making the miracle happen is boosting demand, said Harsh Pati Singhania, President, AIMA, and Director- JK Organisation & Vice-Chairman & MD, JK Paper Ltd.
Even before the Covid pandemic, India’s economic growth had a downward trajectory, which was turned into an outright recession by the lockdown undertaken to contain the pandemic. The second wave in April-May pulled back the recovery. If nothing goes further wrong this year, the GDP could probably grow by around 9.5 per cent instead of the double-digit growth expected before the second wave, he said at the Madras Management Association's 65th Annual General Meeting & Awards Function on Friday.
Consumption push
The Indian government’s stimulus largely helped producers get over their financial hardship, which has left the other part of the equation, that is consumption, out. Already inflation has spiked because of production slowdown and lower capacity utilisation levels in the industry in the absence of adequate buying power and confidence. Though the growing distance from the memories of the second wave is encouraging consumers to spend and the industry to liquidate stocks, a categorical push for consumption is necessary to drive investment in new and technologically upgraded production capacities, he said.
The overall economic environment is no longer grim, but challenges remain. However, the key to doing well in the current situation is to accept the current reality as a long-term trend and adapt accordingly. More than policy, regulation and reforms or fiscal incentives from the government, managers must explore their own ingenuity and use the latest technologies to transform business for continuity and long-term growth, he said.
Covid challenge
Tamil Nadu’s Health Secretary J Radhakrishnan, in his speech, said in the past there have been many challenges, including Swine Flu, Nipah virus and dengue. However, the Covid-19 pandemic posed the biggest challenge. However, the challenge was handled well by all the stakeholders. The challenge gave us an opportunity, he said.
The biggest impact was the number of deaths. No other disease has seen so many deaths in such a short time, he said.