India’s Economic Growth: Insights from Rajiv Memani
Rajiv Memani’s View on India’s Economy
Rajiv Memani, the new CII President, shares his thoughts on India’s economy. He sees good business health and expects strong growth ahead.
Current Economic Scene
- Some sectors are growing well.
- Others face profit issues due to global trade uncertainty and early monsoons.
- GST collection rose by 11-12% in the first quarter.
- Urban areas feel pressure in low-to-middle income groups.
- Rural spending is getting stronger.
Lower interest rates, reduced inflation, and increased crop sowing bring hope. We anticipate a strong rebound and the expected GDP numbers.
Tax Benefits and Spending Habits
It’s too soon to see the full effect of the Budget’s tax benefits. Yet, spending habits are changing. People now spend more on tech and experiences. We expect increased spending in travel, tech, and traditional sectors.
Private Investment Growth
Private investment is growing. Despite myths, private investments are happening. Since 2022-23, private sector investments have increased. However, some factors affect decisions:
- Global uncertainty
- Weaker demand in some areas
- Time for approvals and clearances
- Lack of skilled workers for large projects
Despite these challenges, belief in India’s growth remains strong. Lower interest rates and strong capital markets will drive investments.
US Tariffs and Industry Prep
Talks on US tariffs have been intense. Industry wants a bilateral trade agreement. As the government works on multiple FTAs, industry focuses on reducing non-tariff barriers and improving competitiveness.
Indian industry knows duties could drop by 5-20%. To stay competitive, they focus on R&D investment and improving production factors like land, energy, logistics, and capital cost. CII has formed a committee to address competitiveness.
