NEW DELHI–India, with improved governance and strong social and physical infrastructure, can become the world’s highest growth nation in the 21st century, says a new IBM study.
“India is witnessing a transformation that promises to minimise constraints and support economic advancement. The build out of social and digital infrastructure, powered by local innovations, will help India become an integral part of the global ecosystem,” said IBM India managing director Vanitha Narayanan, while releasing the findings here on Thursday.
In the study titled “Indian Century: Defining India’s Place in a Rapidly Changing Global Economy”, the IBM Institute for Business Value predicted how India could become the world’s highest growth nation in the 21st century.
The study is based on interviews with 1,088 Indian executives across large enterprises (73 percent), start-ups (11 percent), academia (5 percent) and government (11 percent) to get their perspective on opportunities and roadblocks for the Indian economy.
Nearly 51 percent of the Indian executives highlighted improved governance as a key driver for sustainable growth, while social (46 percent) and physical (45 percent) infrastructure were ranked important growth drivers on second and third spots respectively.
Nearly 43 percent executives placed access to capital on fourth spot and said this key factor has been a hindrance in sustainable growth.
“About 40 percent executives backed availability of skilled resources as the fifth key driver to bring sustainable growth in India,” the findings showed.
According to the study, India benefits from entrepreneurialism and diversity and is currently ranking as the fourth-largest source of technology start-ups globally.
“A young population equipped with the right skills and growing middle class will reinforce economic activity through increased consumption and investment,” it highlighted, noting that by 2020, India will constitute 30 percent of the world’s workforce and by 2030, the nation is projected to have the largest middle-class population in the world.
“The study rightly points out that India has immense potential to leapfrog traditional growth paradigms. If we are able to capitalise on the opportunities present in front of us, the next decade can definitely mark the beginning of the Indian Century,” Narayanan emphasised.
Based on unique advantages that India has and the recognition that economic transformation is essential for India’s long-term well-being, the country is already on the path of economic advancement, said the study.