- Wednesday, February 26, 2025
The south Asian nation, considered the world’s fastest-growing economy, should focus on investment areas such as mining, utilities, storage and transport, a senior economist said.
By: Shubham Ghosh
THE Indian economy needs to grow at a yearly rate of eight per cent to go past China as the largest contributor to the global economy, Barclays Plc has said, according to a Bloomberg report.
The south Asian nation, considered the world’s fastest-growing economy, should focus on investment areas such as mining, utilities, storage and transport — sectors that have strong spillover effects on the bigger economy, Rahul Bajoria, a senior economist at Barclays in Mumbai, said in a note on Tuesday (10).
According to Bajoria, investments in those sectors have “taken a back seat” in recent years with newer industries coming to the fore, including telecommunications and the digital sector. Capacity constraints in traditional sectors imply that more investments are needed in those areas, especially from the government, he added.
“Higher investment, especially in traditional sectors, should also have a positive impact on employment and household income, which is likely to be a key deliverable of the economic growth story pursued by policymakers,” Bajoria was quoted as saying by Bloomberg.
In another report stated in September, Barclays estimated that India’s economy grew about eight per cent on average over 2005-10 and could return to that figure after the general elections of 2024 if the new government plans to do that while maintaining macroeconomic stability.
That would mean India would reach a position to become the biggest contributor to global growth and close its gap with the northern neighbour, it added.
