Despite global headwinds, India managed to grow 7.2% in the last fiscal year, FY2023. In this fiscal year, India is projected to grow at 6.3%. However, considering the set target of being a $5 trillion economy by 2028 and an advanced economy by 2047, India needs to maintain a growth rate of at least 8%, said World Bank India Chief Auguste Tano Kouamé.

However, Kouamé believes that, given the prevailing adverse global climate, the 8% target is not conducive. Along with merchandise imports, India is also importing inflation. India is a country that imports 83% of its crude oil for domestic use. As Russia and Saudi Arabia decided to cut production, crude oil prices have soared exorbitantly.

This has created a high inflation threat in the country. Moreover, as developed countries grapple with high inflation, they are raising interest rates, which has dragged them towards recession. With this, India”s merchandise and service exports have also been falling.

However, Kouamé believes that India has the potential to create growth by finding ways to encourage private investment, which can be achieved by public investment crowding in private investment. This will reduce the burden on public investment. India also needs to ensure that the labor market is equipped with the skills that are required by industry. This requires reskilling and investing in new skills so that there is a match between supply and demand at the local level.

India has done well in financial inclusion and the financial sector, but access to financing is not broad-based. Some MSMEs are still struggling to have access to finance, so there is a need to ensure that financing is available, especially for MSMEs, and that the cost is not too high.

Firms have struggled to have access to other inputs and other factors of production. Land is one of them, and it is not very easy to access in India.

Moreover, Kouamé bats for more women”s representation in the Indian labor market. According to the World Bank, India currently has 25% women”s representation. If the country succeeded in raising this to 50%, that could add 1 percentage point to GDP growth and, in turn, help India touch 8% growth rate.

Moreover, this move will enable the country to reduce capital expenditure by lessening money spending on equipment buying. Moreover, it will also help the country to lower capital.