homeeconomy News$5 trillion economy target within sight: NaBFID chairman KV Kamath at Maharashtra conclave
$5 trillion economy target within sight: NaBFID chairman KV Kamath at Maharashtra conclave
NaBFID Chairman KV Kamath's keynote address at the Maharashtra Green Infrastructure Conclave 2023 focused on achieving a $1 trillion SGDP and emphasised green initiatives in industry and infrastructure for sustainable growth.
KV Kamath, the Chairman of the National Bank for Financing Infrastructure and Development (NaBFID), delivered a keynote address at the annual Maharashtra Green Infrastructure Conclave 2023 on Friday, emphasising the state's potential in helping India become not only a $1 trillion economy but aim further for $5 trillion.
Held in Mumbai, the conclave included Sudhir Hoshing, CEO of IRB Infrastructure and Chair of PHDCCI Infrastructure Development Ports, Shipping, Roads and Waterways Committee; Saket Dalmia, President of PHDCCI; Himanshu Agarwal, Co-Chair of PHDCCI Infrastructure Development, Ports, Shipping, Roads and Waterways Committee; and Manick Wadhwa, Director of SKI Capital Services Ltd.
On the sidelines, the NaBFID chairman spoke exclusively with CNBC-TV18, expressing his optimism about India's growth. It is entirely feasible for the nation to double its GDP by FY31, Kamath said. He pointed out that data consumption is also rising at affordable rates, boosting growth.
He cited India's growth momentum, demand, aspiration and funding ability to grow as reasons behind his confidence. He also gave credit to the Modi government and the Reserve Bank of India which he said are running a "tight, well-balanced Budget" and keeping "interest rates attractive."
He also praised the RBI's cautionary stance towards exuberance in the banking sector, highlighting how, in the past, corporate India relied heavily on debt to grow but current trends saw entrepreneurs leveraging their own resources and using bank debt sparingly. This has resulted in cleaner bank sheets, Kamath said.
While he refrained from speculating on RBI's future policy decisions, Kamath expressed confidence in the central bank's ability to do the right thing. He urged stakeholders to consider the global context and learn from economic pundits' management strategies.
"We are now an economy with domestic sustaining power," Kamath said. "We need to meet the aspirations and demands of India."
He echoed these thoughts during his keynote address, expressing confidence in Maharashtra's growth prospects and urging stakeholders not to limit their ambitions to a $1 trillion economy but to aim higher at a $5 trillion economy.
He highlighted India's economic journey, emphasising that it took 25 years to reach the $500 billion milestone from $250 billion. He credited the 1990s' economic liberalisation for driving higher growth rates in the country.
Kamath remained positive about India's ability to achieve the ambitious $5 trillion economy target within the next 18 months.
"India’s $5 trillion economy target is within sight," Kamath said.
He also pointed out that corporate India and banks now boast cleaner balance sheets, with the top 500 companies carrying virtually no debt and generating healthy cash flow.
"Banks have also cleaned up their balance sheet in the last few years and are maintaining healthy capital adequacy," he said.
The chairman of NaBFID commended the government and the RBI for their prudent management of the economy during the global crisis, keeping interest rate hikes moderate compared to other countries.
"The government, corporates and banks are not over-leveraged today," Kamath pointed out.
Emphasising the long-term perspective, Kamath stressed that infrastructure development should not be confined to a 5-10 year horizon but viewed from a 25-year lens.
He envisioned infrastructure as the driving force behind India's future growth, particularly in transforming its cities. He saw significant opportunities in this aspect, signalling a need for substantial investments in infrastructure.
"We are not going to fall short of opportunity or need to invest," the chairman said.
The one-day event has been organised by the PHD Chamber of Commerce and Industry.
First Published: Aug 4, 2023 12:12 PM IST
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