India can grow at 8% consistently for decades to come: VP Jagdeep Dhankhar

New Delhi: India, the most buoyant among developing countries, can report 8% economic growth consistently for decades to come, Vice President Jagdeep Dhankhar said on Wednesday.

The country's growth has been consistently high, fuelled by infrastructure development, Dhankhar said at the inauguration of the second edition of the UP International Trade Show at Greater Noida.

The government's attempts to boost manufacturing and enable India to capitalise on emerging technologies such as artificial intelligence, electric mobility and semiconductors will further boost the economy, he said.

"Today, Bharat (India) is a near $4 trillion economy with 8% growth prospects for decades to come," he added.

India remains the fastest-growing major economy. Its GDP expanded 8.2% in FY24, at a faster pace than the 7% reported in FY23, according to data released by the National Statistical Office (NSO). The Reserve Bank of India expects the economy to grow at 7.2% in FY25.

India's economy grew at 6.7% in the April-June quarter, following a 7.8% expansion in the previous quarter (Q4 of FY24), at the slowest pace in five quarters, according to data released by the statistics ministry in August.

While the slowdown, termed temporary, has been attributed to lack of economic momentum during the general elections, muted government capital expenditure and an uneven monsoon, India's economic growth is expected to pick up in the coming quarters.

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Dhankhar emphasised the growth fuelled by the digital infrastructure push of the government.

"We now have the world's second-largest metro network and the number of cities with airports has doubled from 70 to 140. India is the largest connected nation globally, with over 800 million broadband users," he said. “In terms of digital financial transactions, India records the highest globally, with 13 billion transactions per month. Additionally, we boast the world’s third-largest startup ecosystem, featuring 117 unicorns and the third-largest purchasing power in the world.”

However, Moody's warned in its latest commentary that economies in the Asia-Pacific region, including India, could see lower gains through exports in the coming quarters due to softening of global demand.

Also Read: Moody’s raises India’s 2024 growth forecast to 7.1% on better growth in Asia-Pacific

"This leaves domestic demand to pick up the slack, but consumption spending across the region’s largest economies is not back to full strength. Fading inflation and appreciating currencies pave the way for rate cuts, offering a glimmer of hope," it added in the report released on Tuesday.