The Centre’s fiscal deficit target of 5.1 per cent of the GDP for 2024-2025 is absolutely achievable in the backdrop of overall growth momentum in the country, veteran banker K V Kamath said on Friday.
“Given all that has been achieved especially during Covid-19 years these targets look absolutely achievable...When you look back at any country in the world, we have come out looking the best,” Kamath said in a fire side chat at the 45th anniversary celebration of PKF Sridhar & Santhanam LLP.
Kamath also highlighted momentum in manufacturing, infrastructure development and clean balance sheets as positive factors that will help government’s fiscal consolidation targets.
Fireside chat
The fireside chat was moderated by Thomas K Thomas, Senior Associated Editor and chief of businessline’s Mumbai bureau.
Kamath, who is chairman of National Bank for Financing Infrastructure and Development (NaBFID), said that momentum provided by the government has made it possible the current growth rates. He cited the example of roads sector which has seen huge investment in past few years with National Highway Authority of India financing projects through InvITs. He added that focus should be on building rail infrastructure in the country and that will in turn give a push to manufacturing and employment in the country.
When asked what India needs to do to become a $10 trillion economy, Kamath said the growth momentum is enough to hit the target.
Kamath said to achieve 10 trillion-dollar economy the country just needs to keep the momentum going. “You have a government which is inclined to do things and put efforts where it is needed primarily in infrastructure ...You have cleanest banking system in the world...I never imagined I will see in my lifetime banking net NPAs of around 0.5 pc..., “ he said.
Kamath added there is a opportunity for next 20-25 years to build India. “It will provide the momentum for the leap from 24 to 2030 and thereafter for next 17 years. To me that’s the golden period of India,” he said.