Indias economy could expand at a spectacular rate of 8.4 per cent over the next five years and if it solves its constraints in infrastructure,skilled workforce and agriculture,it could even grow at 10per cent,according to an assessment by credit rating agency Crisil.
In its report India-Raising the growth bar released in Mumbai on Tuesday,the agency said that expanding supply potential is key to the economys double digit growth.
The inherent strength in domestic demand will enable the countrys economy to maintain an 8.4 per cent annual growth in the next five years ending 2015-16.
Domestic demand spurred by a large growing young population and robust consumption and investment rates will support 8.4 per cent economic growth over the next 5 years, the report said quoting Crisil MD and CEO Roopa Kudva.
The growth will be fuelled by a rise in middle class spending that would boost the demand for durables like automobiles and white goods and services like hotels,restaurants and tourism.
Crisil says India needs to improve physical infrastructure,address skill shortages,step up the faltering agriculture,tame high food inflation and achieve the fiscal flexibility to spend on health,education and physical infrastructure.
Improving governance standards is also a key area to unleash the countrys growth potential.
If jobs are created and youth are equipped with the required skill-sets,Indias economic growth will accelerate, the report said quoting Crisil chief economist Dharmakirti Joshi.
Lack of skilled manpower limits productivity,increases wages,and raises unemployment levels. Only about 10 per cent of Indias youth (15-29 years) receive vocational training,and the majority of engineering graduates are unemployable in the IT and IT enabled services without additional training,the report points out.
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- India economy