Indian economy could grow at over 11% in 2022: Tata Sons chairman

Earlier this month, Reserve Bank of India (RBI) governor Shaktikanta Das had also noted that the economy was rebounding faster than anticipated and will probably turn positive in the latter half of the current financial year.

Tata Sons chairman N Chandrasekaran said on Saturday the Indian economy could rise by over 11 per cent in the financial year of 2022 and that the new India can be a global leader in R&D, science and technology and most importantly in artificial intelligence or AI.

The Tata Sons chairman N Chandrasekaran, while expressing the value of digitisation during the pandemic, also stressed on the decoupling of the US and China and the hour’s need to reimagine a new approach to the global value chain. (Mint file photo)

“While the rebound looks spectacular, we all recognize it is coming on the back of a real loss of output which means we will need to not only recover but accelerate,” Chandrasekaran said during the 93rd annual convention of industry chamber Ficci. “In the near term, there are reasons for alot of optimism. Several high frequency indicators have rebounded much faster than any of us expected. The contraction in economy in the third quarter was also smaller than expected. The GDP growth could accelerate to over 11 per cent in 2022 after a significant contraction in ‘21,” Chandrasekaran said.

India’s gross domestic product or GDP contracted 7.5% in the quarter ending September after falling by a record 23.9% in April-June period quarter, amid the coronavirus pandemic-induced which hit businesses and livelihoods across the country.

Earlier this week, the Asian Development Bank had modified its projection for India by upgrading the forecast to 8 per cent contraction in 2020-21 from previously estimated 9 per cent, as it observed a faster recovery in the Indian economy. Earlier this month, Reserve Bank of India (RBI) governor Shaktikanta Das had also noted that the economy was rebounding faster than anticipated and will probably turn positive in the latter half of the current financial year.

Speaking at the convention, Chandrasekaran added the industry and the government need to work in partnership for growth. A collaborative effort will help in expansion of bandwidth to reach all villages, get all the talent and will make data affordable for all thereby making India ready to enter the new world order

He noted that for India to realise its true potential regulations on data privacy, data security, data localization, data residency and taxation, in general, is very important. The Tata Sons chairman, while expressing the value of digitisation during the pandemic, also stressed on the decoupling of the US and China and the hour’s need to reimagine a new approach to the global value chain.

He also emphasised the significance of recognising climate change and the path to an energy-efficient nation. He said that within the next two decades around 20 energy sources could be fueling the global economy and added that “energy efficiency in mobility, solar manufacturing and rethinking our food supply chain are areas to focus as we emerge from the pandemic.”

Chandrasekaran also highlighted that his company is scaling up on the digital front and is heading towards new platforms in sectors of tech manufacturing, future mobility, renewable, health and also have plans to collaborate and work with SMEs to boost the economy.

(With agency inputs)