New India is poised to enter $5 trillion club: YES Bank MD & CEO Rana Kapoor

NEW DELHI: A ‘New India’, its rise anchored in the visionary leadership of Prime Minister Narendra Modi, is poised to enter the $5 trillion club, and the ET Global Business Summit (GBS) is the power-packed policy platform that could help finalise the blueprint to achieve the 2030 goal of creating a $10 trillion economic powerhouse.

“Increasingly, the India Story is becoming a global buzzword… We will shortly discuss our accession toward becoming a $10 trillion economy by 2030--which is certainly well within our grasp,” YES Bank managing director and CEO Rana Kapoor said in his address. “In the last few years, our economy has witnessed extraordinary turnaround, outshining not just our peers but also major global economies. From being classified as Fragile Five, we are now being clubbed in the $5 trillion club.”

The two-day ET-GBS 2018, which has an impressive lineup of thought-leaders, including the Prime Minister and a galaxy of global business tycoons and policy makers, began Friday.


“We have a stellar congregation of Indian and international ministers and policy makers, over 100 domestic and international leaders, and over 500 CEOs in attendance amongst the 2000-plus delegates, and most importantly, honourable Prime Minister Narendra Modi,” Kapoor said, helping set the agenda for the global business policy and leadership summit. “Genetically we have to modify ourselves,” said Kapoor, referring to how new rules are aimed at curbing unscrupulous business practices.

Kapoor touched upon the broad and deep financial reforms that are expected to help drive economic growth in India, Asia’s third-biggest economy, and among the world’s fastest-expanding. Structural reforms in taxation and bankruptcy are helping enhance India’s global ranking in the ease of doing business while underpinning sustainable growth in the broader economy.

“Undeniably, India’s economic strength has been bolstered by several structural reforms, such as the Insolvency and Bankruptcy Code, demonetisation and the push for digital finance, GST (goods and services tax), FDI (foreign direct investment) liberalisation, and fiscal federalism,” Kapoor said, underscoring the theme of ‘New Economy, New Rules’. “As India’s economy spreads its wings to fly even higher, global validation of our efforts is visible in a heartening improvement in our ease of doing business ranking, which now stands at 100 as per World Bank, a jump of 30 places.”

India’s favorable demographics, buttressed by increasing domestic consumption and affordability, should help build the superstructure for sustainable growth in the economy. Growth in India is expected to be broad-based, with an increasing number of people joining the consumption ladder, benefiting from policy interventions.

“As India aims to unlock the potential of its demographic dividend by choosing to invest in and develop human capital, the combination of fiscal discipline, consumption-investment revival, a favourable startup ecosystem and tech-focused initiatives will create a virtuous cycle of higher, inclusive, (and) sustainable growth,” Kapoor said.