India can become a $10 trillion economy in the next 15 years, from the existing $2 trillion, like China did in last one and a half decade, said NITI Aayog Vice-Chairman Arvind Panagariya on Friday.
“India started off to rapid growth a little later than China, but now it has the potential to accomplish in the next 15 years what China did in the last 15 years. Today, India’s GDP stands at about $2 trillion and it has good prospects of rising to $10 trillion in the next 15 years,” Panagariya said addressing the India China Investment Conclave at Ficci.
“What China has accomplished in last 15 years is very impressive. It (China’s economy) has gone from $2 trillion 15 years ago to $10 trillion today.”
NITI Aayog is preparing a 15-year vision blueprint which will provide a road map for developing India into a big economic powerhouse with inclusive growth.
Analysts say Indian economy will have to grow at over 10 per cent in the next 15 years to hit the $10 trillion level.
On bilateral co-operation, Panagariya said, “With China promoting out-bound investment and India seeking foreign capital and technology, it should enable us to take advantage of the synergies and put in place a vigorous framework to strengthen bilateral investment relationships.”
He was of the view that there is much scope for India to benefit from Chinese experience in the manufacturing sector and transform the country into a modern urban economy.
Panagariya termed India and China as “two rare bright spots” in an otherwise sluggish world economy. “Despite a decline in growth rate, China contributes a handsome $500 billion or more to annual growth of the global economy,” he said.
His Chinese counterpart Xu Shaoshi, Chairman of National Development and Reform Commission (China) (NDRC), said: “China and India are two important forces. They are powerhouse of Asia and the world. There is a need for the two countries to go beyond bilateral relationships.”
Shaoshi was clear that the two countries have the potential to build the world’s most attractive and competitive places.
Shaoshi is leading a team of businessmen and government officials to participate in the two-day India-China Strategic Economic Dialogue on October 6-7, 2016.
“We need to have more consensus on co-operation in the region. India has some active promotion policies like Make in India and Startup India while China has initiatives, including smart manufacturing,” he added.
Emphasising on investment as the key to rebalancing bilateral trade, Ficci’s former president Jyotsna Suri spoke about a proposal for partnership with NDRC to set up a task force to identify potential projects for companies in respective countries.
Ficci also proposed a Joint China-India SMEs GVC Initiative in collaboration with NITI Aayog, Ficci and NDRC.
For realising the Sustainable Development Goals (SDGs) of China, India and neighbouring Asian countries and NITI Aayog’s Vision 2022, Ficci also proposed setting up a forum to identify and facilitate bankable projects in energy, infrastructure and other sectors.