BENGALURU: Commerce and industry minister Piyush Goyal said the combination of growth driven by consumption, alongside growth propelled by investment can serve as twin pillars for India’s economic advancement. “Economists will tell you that consumption-led growth, coupled with investment-led growth, can together become the twin pillars on which India’s growth story will rapidly scale up,” he said at the Invest Karnataka event held in Bengaluru on Wednesday.
“When you give Rs 1 lakh crore to consumers, the multiplier impact of that is at least 2.5 times in terms of the consumption demand that the marketplace receives. And when Rs 11.2 lakh crore is invested in one year on infrastructure creation, the multiplier impact of that is 3.5 times, which spurs investment-led growth. On these twin pillars, India will see rapid growth,” he said. In the Budget, FM Nirmala Sitharaman gave relief to taxpayers by announcing that there will be no tax on income up to Rs 12 lakh under the new regime.
Goyal spoke about boosting exports and manufacturing by introducing new policies to propel the toy and footwear industries. “Our exports are now 3.5 times what they were five years ago. We will soon introduce policies to further promote manufacturing in toys and footwear so that we can become a global champion in these sectors,” he said. Over the past decade, Goyal said India attracted nearly $700 billion in FDI.
Over the next three decades, India’s demographic advantage will continue.
