‘India Inc confident of achieving $5 trillion economy’
   Date :24-Jan-2024

India Inc confident of achieving 
Business Reporter
INDIA Inc is confident of achieving USD 5 trillion economy with the Central Government’s support in infrastructure investments, additional reforms, and enhanced technology adoption, according to a CXO survey by Deloitte Touche Tohmatsu India LLP. Stating that business leaders anticipate strong economic growth for the next fiscal year, Deloitte in a statement said about 50 per cent of India Inc reflects optimism about the country posting above 6.5 per cent growth in FY25. Amongst industry sectors, automotive (50 per cent), consumers and retail (66 per cent), technology, media, and telecommunication (47 per cent) and energy, resources and industrials (44 per cent) anticipate high growth. “Government initiatives, increased trade collaborations, lowering of logistics cost, and policies to increase industrial production (such as intelligent automation in manufacturing and increased investment towards sustainable technologies), will further this momentum. Changing consumer preferences and strong demand in tier-2 and tier-3 cities are other factors aiding this outlook,” it said.
Deloitte said India is poised to fortify its position as a global hub for innovation and research. “Government support for initiatives emphasises the pivotal role of R&D, such as positioning the nation as a manufacturing stronghold and advancing the semiconductor industry.” As leaders anticipate significant growth in the semiconductor industry, they expect a comprehensive, long term policy framework from the Government to attract investments. About 64 per cent of respondents advocate for R&D support for local companies, while 57 per cent underscore the significance of an effective Intellectual Property Rights framework to foster industry growth. Such strategic measures will attract more investments to India and increase competitiveness in the high-technology manufacturing sectors. AI has become the basis of modern business, offering extraordinary opportunities for growth. About 99 per cent of businesses expect AI to evolve and about 70 per cent of consumer and retail businesses are urging Government support to regulate AI use, stressing strict adherence to ethical practices in data and methods.
Leaders also anticipate the Government to prioritise the implementation of Industry 4.0 technologies (AI, ML, NLP, and computer vision), along with continuous efforts in more skill development initiatives, particularly in upskilling and nurturing talent in tier-2 and 3 cities. To foster India’s growth, ensuring sustained business expansion and more foreign investments into the country, about 80 per cent of leaders emphasised on the continuity of tax certainty. The respondents also cite complete readiness for addressing geopolitical concerns and well-defined mitigation strategies. They highlight the importance of global events, such as G20 and initiatives to enable the streamlining of the global supply chain. Sharing his views on the survey findings, Sanjay Kumar, Partner, Deloitte Touche Tohmatsu India LLP, said, “As we navigate the challenges and opportunities outlined in the survey, the vision for a digitally empowered India becomes increasingly tangible. Our survey findings reinforce the importance of innovation and collaboration in pursuing economic excellence, aligning with our national goal of a USD 5 trillion economy”.
“Together, through strategic technological advancements, we are poised to elevate the ease of doing business in the country and leave an indelible mark on the global stage,” he said. ESG initiatives remain a priority with 100 per cent of respondents emphasising the importance of renewable energy. Leaders expect the government to prioritise investing in ESG strategies and initiatives followed by technological innovations, infrastructure development, and skill enhancement. About 90 percent of businesses also want technological innovation in Government processes and operations. The survey also highlighted global headwinds and continued cost escalation concerns, which need strategic measures. Business leaders stress the importance of targeted skill development, aligning with the CXO survey and positioning India as an attractive, forward-thinking economy poised for sustained growth.