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Piyush Goyal Highlights Consumption and Investment as Twin Pillars of India’s Economic Growth
Commerce and Industry Minister Piyush Goyal has emphasized that India’s economic growth can be significantly boosted by a combination of consumption-led and investment-led strategies. Speaking at the Invest Karnataka event in Bengaluru, he stated, “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.”
The Multiplier Effect of Consumption and Investment
Goyal elaborated on the multiplier effects of both consumption and investment on the economy. He noted that allocating Rs 1 lakh crore to consumers results in a multiplier impact of at least 2.5 times in terms of consumption demand in the marketplace. Similarly, investing Rs 11.2 lakh crore in infrastructure development within a year yields a multiplier effect of 3.5 times, thereby stimulating investment-led growth. He emphasized that these twin pillars will enable India to experience rapid economic advancement.
Policy Initiatives to Boost Exports and Manufacturing
The minister also highlighted efforts to enhance exports and manufacturing by introducing new policies aimed at the toy and footwear industries. He mentioned that India’s exports have increased to 3.5 times their value from five years ago. To further this growth, the government plans to implement policies that promote manufacturing in sectors like toys and footwear, positioning India as a global leader in these areas.
India’s Demographic Advantage and Foreign Direct Investment
Goyal pointed out that over the past decade, India has attracted nearly $700 billion in Foreign Direct Investment (FDI). He expressed confidence that India’s demographic advantage will continue over the next three decades, contributing to sustained economic growth.
In the recent Budget, Finance Minister Nirmala Sitharaman provided relief to taxpayers by announcing that there will be no tax on income up to Rs 12 lakh under the new regime. This move is expected to increase disposable income, thereby boosting consumption and contributing to economic growth.
These initiatives reflect the government’s commitment to leveraging both consumption and investment as key drivers to propel India’s economic trajectory in the coming years.
