India is in multiple sweet spots, from geo-strategic to demographics. 5.5.-6.5% growth looks par for the course. But what would it take for growth to head toward 7%?
The economy has weathered two major shocks—the 2020/21 pandemic and the 2022 food/energy shock.
Yet, business and consumer sentiments have revived, demand markers are robust, and BOP is stable.
Three areas need momentum for growth to head toward 7%. First, literacy and skills need enhancing.
Second, health indicators are lagging peers; more investment would help productivity.
Third, openness to trade and regional cooperation by embracing regional value chains is key.