“The world economy is going down and several developed countries have a growth rate of 1%, 1.5% or 2%, India’s growth story even at 5 percent is quite attractive,” says Ruia Group chairman Pawan Ruia
India is one of the largest economies in the world. With a nominal GDP of $2.72 trillion, the country is set to leapfrog France and the United Kingdom. In terms of purchasing power parity that stands at $11.33 trillion, the country ranks third overall. India’s growth rate was expected to rise further, before a major slowdown halted the growth story of the country.
However, many experts believe that the slowdown is temporary and is not going to cause a major concern in the longer run. One such individual is , Pawan Ruia the chairman of Ruia Group. Although the country’s GDP has come down from 7.5% to 5%, he remains upbeat about the future.
“India is now a major economic booster for the world and everyone is looking for investment in our country. In spite of the GDP being at 5% or less than 5%, I foresee a lot of interest among many people to invest in India at this point of time,” says Pawan Ruia.
On the other hand, several researches have suggested that the ongoing slowdown and weaker growth across the world can turn into a recession, which has been termed as a serious threat by the UN. At this juncture, many experts are expecting the recession to have a major impact on India in the coming months, while others have refuted the claims.
“The fear of the recession worldwide may impact India, but to a very little extent. We have seen that the GDP is falling because of the international recession, but, I don’t foresee this to have a major impact on the Indian economy, as it is basically an agricultural economy and the larger population means larger consumption,” says Pawan Kumar Ruia, chairman of Ruia Group.
“India is strong enough to combat such circumstances. We have seen a similar situation arising in 2008, when the world was completely under recession. But, India still held strong at that particular time and the reason for that was similar to what we are seeing right now,” he adds.
There is no doubt about the facts that have been generated in the last few months, suggesting that the Indian economic situation is gradually becoming more and more worrisome.Although the reports cannot be denied to an extent, the strength of the country remains intact. India is quite different from other countries, which means that the global slowdown cannot have a major bearing on the growth of the country.
Indian economy is majorly dependent on the agricultural output, which constitutes 60% of the GDP. It is the biggest factor for the country that is likely to hold the growth rate to a respectable figure even in challenging circumstances.