Roubini: Continued Reforms Could Propel India’s Growth to 8%, Positioning It as a Major Global Power

India’s potential growth rate could reach 8% with further economic reforms, positioning the country as a major global economic power in the coming years, according to renowned economist Nouriel Roubini. Speaking at the ET World Leaders Forum, Roubini, a professor emeritus at the Stern School of Business, New York University, emphasized the importance of sustained policy changes to achieve long-term economic success.

Roubini highlighted that under current policies, India’s potential growth rate stands at 6% to 7%. However, he asserted that additional reforms could elevate this figure to 8%. “The good news about India is that potential growth under the current policies is at least 6%, maybe 7%, and if additional economic reforms can occur, that can lead potential growth to be 8%,” he said.

Comparing India’s trajectory with China’s, Roubini noted that while China outpaced India in economic growth over the past few decades, the roles could reverse in the future. He acknowledged that India must catch up from a lower per capita income level but emphasized that continuous and expanded reforms are crucial for sustained growth.

Roubini outlined several key areas where reforms should be deepened, including land and labor markets, bankruptcy laws, financial inclusion, investment in skills and human capital, bureaucratic efficiency, and public service provision. He expressed optimism about India’s future, predicting that the country will soon become the world’s third-largest economy and, with it, gain significant political and geopolitical influence.

Roubini, often referred to as “Dr. Doom” for his accurate prediction of the 2008 financial crisis, concluded by stating that India is on track to become one of the world’s leading superpowers within the next few decades.