India has the potential to achieve 9 per cent growth rate and become a $10 trillion economy by 2034 on the back of concerted efforts by the corporate sector and a constructive role played by the government, a PwC report said on Monday.
"India is on the cusp of major change ... For India to take the winning leap and grow its GDP by 9 per cent per annum to become a $10 trillion economy, a concerted effort from corporate India, supported by a vibrant entrepreneurial ecosystem and a constructive partnership with the government will play a critical role," said the PwC report, 'Future of India - The Winning Leap'.
Up to 40 per cent of India's $10 trillion economy of 2034 could be derived from new solutions, it said.
The report added, however, that the winning leap should not be limited to a new approach of solutions but rather needs to be seen as a play-top-win mind set. "The world economic picture is pretty challenging in the next 12-18 months. Having said that we are talking about all the opportunities that are here in India and they are significant," PricewaterhouseCoopers (PwC) International Ltd chairman Dennis Nally said after releasing the report.
"I think with the right type of collaboration between government and private sector, the potential of this economy is much bigger than 5 per cent that is currently forecasting," he added.
The report said that each of the key areas - education, healthcare, agriculture, retail, power, manufacturing, financial services, urbanization and the enabling sectors such as India's digital and physical connectivity - face challenges and their resolution will need new and scalable solutions that are resource efficient and environmentally sustainable.
It emphasized upon the need to tap into the vast human resource capital available in the country and the Human Development Index (HDI) needs radical improvements over the next two decades. "A young demographic, paired with a burgeoning middle class that is digitally enabled, is a once in a lifetime opportunity for India to develop economically and socially. India can only build shared prosperity for its 1.25 billion people by transforming the way the economy creates value," Nally said.
For the shorter term, Nally expects Indian economy to grow at about 5.5-6 per cent. However, he added that 9 per cent is most definitely achievable if the things suggested by PWC report are put in place. The report categorically suggests that anything less than $10 trillion would not secure India's future.
"The nation needs to create 10-12 million jobs every year in the coming decades to provide quality of life for its growing population ... The recent electoral mandate for development is a more immediate signal for Indians' desire for growth and for the benefits of growth to be extended to all members of the society," it said.
A 9 per cent GDP growth rate with a per capita income rising from $1,500 to just under $7,000 per year will boost quality of life for more than 1.25 billion citizen, it added.
About organisations, it said they should focus on serving informed and empowered customers, create flexible and adaptive operating models, draw on non-traditional resources and partnership as well as adapt a growth and innovation mindset.
They should also focus on accountability, integrity and sustainability to form basis of their capability building measures and investment, it added.
PwC chairman Deepak Kapoor said: "Corporations alone can't fuel growth and innovation needed to power India's winning leap. Hence, the entrepreneurial sector must also play a major role and they possess qualities critical for developing innovative solutions, the willingness to take risks and aptitude for fast decision-making, and bold leadership."