The brokerage house said – this decade is a big opportunity for economic development, employment generation for India.
The government has been focusing on promoting domestic manufacturing for the last several years.
Government of India can make important announcements in the budget regarding economic reforms.
New Delhi. International brokerage house Goldman Sachs said in its outlook for 2023 that continuation of economic reforms in the medium term will help India boost its potential economic growth rate above the currently estimated 6 percent.
The brokerage house said, “The biggest opportunity for economic growth and job creation for India in this decade is to develop a globally competitive manufacturing hub. Because the supply chain is being reorganized around the world. However, to truly become a manufacturing powerhouse, a co-ordinated strategy will be required across all relevant government departments, so that it becomes really easy for global manufacturing to set up units in India.
Announcements can be made on economic reforms in the budget
The Indian government is expected to present its budget for the next fiscal year on February 1 amid hopes that it will continue spending on reforms and infrastructure to boost medium-term growth.
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The government has been focusing on promoting domestic manufacturing over the past several years and has also increased its spending on infrastructure to crowd in private investment. It has also introduced several production linked incentive schemes to promote manufacturing in all sectors.
Earlier, Goldman Sachs has reduced India’s GDP forecast to 5.9 percent in the next financial year. Economists of the brokerage house have said in the report that India’s economy may slow down in the first half of the next financial year.
But in the second half, the growth rate is likely to pick up again. Because the situation will improve at the global level and it will be beneficial. The agency feels that retail inflation will also come down to 6.1 per cent next year as against the estimated 6.8 per cent this year.
FIRST PUBLISHED : November 24, 2022, 16:51 IST