NEW DELHI: Naushad Forbes, Co-Chairman of Forbes Marshall and former president of the Confederation of Indian Industry (CII), emphasized the need for India to elevate its economic ambitions beyond current projections. Speaking on the FED Dialogues podcast, Forbes suggested that while India is poised to surpass Germany and Japan to become the world’s third-largest economy in this decade, the country should strive to eventually surpass China.
Highlighting India’s economic progress since 1990, Forbes acknowledged the nation’s robust growth but noted that China had achieved even greater strides. He proposed that sustained growth rates of 8-10% annually for the next three decades are necessary for India to converge with developed economies.
Forbes underscored the significance of manufacturing as a generator of high-income jobs, contrasting it with the growing gig economy. He advocated for a focus on labor-intensive manufacturing, citing its historical role in the economic ascent of large countries.
Addressing the need for innovation, Forbes urged Indian industries to significantly boost investment in research and development (R&D). He highlighted India’s current R&D expenditure of 0.3% of GDP, significantly lower than the global average of 1.5% and China’s approaching 2%. Forbes emphasized the potential of sectors like pharmaceuticals, urging firms to move beyond generics through substantial R&D investments.
Regarding education, Forbes stressed the importance of leveraging private sector involvement to enhance quality, suggesting a market-driven approach to ensure educational institutions meet higher standards.
In terms of policy recommendations, Forbes discouraged industry reliance on government incentives and subsidies. Instead, he advocated for simpler regulatory frameworks such as streamlined GST rates to facilitate business growth.