Indian Economy Emerging Stronger After COVID-19: SoftBank India Head

Mumbai: Investment climate in India is improving and the economy will bounce back faster in the next financial year from the impact of the pandemic, SoftBank India Country head Manoj Kohli said on Saturday. Also Read – When Will Indian Economy Revive? Here’s What NITI Aayog Vice Chairman Rajiv Kumar Has to Say

“India is emerging stronger after COVID-19…I”m not giving a final judgment or anything. But I can see that from the trend that India is in the process of emerging stronger,” Kohli said at an event hosted by XLRI. Also Read – Reviving Economy: Will RBI Announce Another Rate Cut Soon? Check Details Here

From April 2021, the economy will grow faster than the previous year, and will soon recover the lost ground. Also Read – Indian Economy Exhibited Stronger Than Expected Pick up in Momentum of Recovery: RBI

The Indian economy has clawed back faster than expected in the second quarter of 2020-21 with the contraction at 7.5 per cent.

Kohli further said that becoming a USD 5 trillion economy by 2025 is a very important goal and the next five years are tough.

“It’s not going to be easy but we have to make it happen. Today we are nearly USD 2.7 trillion. Of course, COVID-19 has dropped it further, but it was like that before the pandemic, and to reach USD 5 trillion will be very intense,” he added.

To achieve this target, the country needs massive investments and since the Indian banking and financial services market is small, global investments are required, he opined.

The key sectors that will drive growth and help India become a USD 5 trillion economy are infrastructure, manufacturing, healthcare, education and insurance, he added.

Further, Kohli said many companies have increased their new product and service development capabilities so that they can bring new products to the customers.

“They have also initiated some changes and shifts in their business models, which have also made them financially stronger. So, I believe that many companies, Indian companies including startups have become stronger,” he added.

He said, even during the COVID-19 times the government has brought in many sectoral reforms, including labour and farm reforms.

“Yes, the country will take time to fully adjust to these new reforms, like farm reforms. But finally, with education I”m sure that people will accept them,” he said.

Also, the government policy of dual listing will hugely benefit Indian companies to raise funds.