PwC India report said that India can reach its potential growth rate at 9 per cent by avoiding the frictions exposed by COVID-19 crisis. By using the ‘transformative’ moment to fast track all activities over the next three years. As per PwC’s ‘Full Potential Revival & Growth – Charting India’s medium-term journey’ report, if India can increase the average growth rate to 9 per cent from the pre-COVID-19 five year average of 6.8 per cent, and by broadening and deepening nation’s economy make the growth more productive, though this can create three additional Indias with a cumulative additional GDP of $10 trillion, in a decade post-recovery.
The report is completely based on interviews with business, public and private sectoral analysis. The report shows that over a three-year time period by removing frictions can be highlighted and through joint action, a fast revival and higher growth can take place. As per the analysis the key nine sectors that can make up 75 per cent of India’s pre-pandemic GDP and MSME segment.
The report analyses that investing in physical infrastructure, in the semi-urban and rural areas, will give a fast and immediate growth to the economy and also create employment opportunities. By activating the over 100 lakh crore spending of economy earmarked under the national infrastructure pipeline for creating infrastructure in the coming five years.
The report also noted that digital support can engage a lot of people, make new links to markets, and make supply chains and finance more reliable. The focus should be more on improving digital infrastructure, not merely in metropolitan and urban centres where internet penetration is so developed, but also in smaller towns and districts.
The sectors including healthcare and pharmaceuticals will have their own ‘Y2K’ moment. The Indian IT industry benefited from the threat faced by computers by the data change of 2000. The India pharma companies that are already supplying generics to have a significant portion of the global population can leverage key changes which resulting from the pandemic to upgrade, become effective and support to both an Indian and a global health revival process.
MSMEs ecosystem development will be important for employment in the revival and growth stage given their employment opportunities. According to Shashank Tripathi, PwC India, As we rebuild the Indian economy, it is effective that can remove frictions and have a true grow*th historically. While each sector must grow on its own, increasing flow of data and efficiency between sectors and across institutions will be important.