India to achieve 8% growth rate: NITI Aayog vice chairman

India possesses the potential to achieve an 8 per cent growth rate, propelled by its abundance of labour and the institutional maturity characteristic of a functioning democracy, asserted Suman Bery, Vice Chairman of NITI Aayog. 

Speaking at the Global Economic Policy Forum 2023 organised by the Confederation of Indian Industry (CII) and the finance ministry, Bery acknowledged the disparities between the northern and southern regions of India, underlining the need for political management to sustain growth.

"So 8 per cent growth or something approximating that means continuous change that needs to be politically managed," Bery said.

Bery underscored the nation's advantage of not being labour-constrained in a global landscape facing increasing labour constraints. He further emphasised India's institutional maturity, particularly the established rules governing the transfer of power exemplified in recent state elections.

Bery also noted the imperative role of economic growth as a means to elevate living standards and fortify India's strategic and institutional economy. Despite being the fastest-growing major economy, India still maintains the lowest per capita income among G20 nations. 

"And if I wanted to bet on India for the next 25 years, I would point to first, the fact that we are not labour-constrained in a world which is increasingly labour-constrained, but much more importantly, that we have the institutional maturity of a functioning democracy with established rules of the game for the transfer of power we have just seen magnificently in the state elections," he added.

Bery emphasised the continuous need for dynamic change, indicating the political challenges associated with sustaining a growth trajectory, particularly in addressing regional disparities.

"So growth is not an end in itself, but it is a means to an end to raise living standards and to secure India's strategic and institutional economy," he said.

(With PTI inputs)