India's GDP could double in seven years, Sharma says
Economy likely to reach $4.5tr by 2020 driven by 12%-14% growth
Dubai: The Indian economy is poised for sustainable double digit growth in this decade. Its gross domestic product is set to double in the next five to seven years, Anand Sharma, India's Minister for Commerce and Industry, said Wednesday.
"The economy grew more than 7.5 per cent last year despite the financial crisis. This year we are expecting it to be close to 9 per cent and in next two years we anticipate GDP to cross double-digit growth rates," Sharma said.
Last year India's nominal GDP was $1.3 trillion. The minister said he expects it to nearly quadruple in the course of 10 years.
"Studies indicate that our economy is likely to be $4.5 trillion by 2020 driven by a nominal annual growth rate of 12 to 14 per cent," he said.
The minister said the overall foreign direct investment flow to India grew last year despite a 30 per cent decline globally. While India's manufacturing sector reported 18 per cent growth last year the overall savings and investment rates in the country were 36 per cent and 34 per cent respectively.
"India's credentials as an investment destination with high return on investment is attracting investment from across the world.
"Knowledge-based industries such as information technology, pharmaceuticals, automobiles and financial services sectors are booming," he said.
