India needs to grow at 10 per cent annually for the next 3 decades to be able to meet the ever-rising demands of its growing population, Niti Aayog CEO Amitabh Kant said on Monday. This order of growth, however, will not be achieved if the ‘business-as-usual’ approach to the use of scarce resources continues, he said.
He said for reducing dependence on fossil fuels in transportation, a Niti Aayog analysis suggests the way forward is the use of bio-fuels. “We are giving a big push to electric vehicles in a bid to conserve exhaustible natural resources and bring about resource efficiency,” Kant said at Ficci’s circular economy symposium-2018 here.
He also underlined the need to embed the principles of circular economy in India’s school education system. A circular economy, in contrast to the ‘make-use-dispose’ model of the linear economy, focuses on use of resources for longest possible time as also recovering and regenerating products and materials at the end of their life cycle.
Noting that the government needs to enable regulatory framework for circular economy, he said: “We should incentivise use of renewable material for the construction sector.” Kant stressed that the government needs to push the limits of the circular economy and make it a mass movement.
According to Ficci-Accenture study, which was released by Kant, by adopting circular business model, India could reap a reward of between $382 to $697 billion by 2030. The report pointed out that the circular economy through its innovative business model, offers a unique opportunity to decouple growth from resource requirements. According to the report, 5 factors will be critical to accelerate circular models in India – greater awareness, disruptive technologies, enabling policy landscape, innovative funding models, and collaborations and partnerships.
Meanwhile, Japanese financial services major Nomura said in a report that despite moderation in factory output growth in March, GDP is expected to grow by 7.7 per cent in January-March, up from 7.2 per cent in the preceding quarter. Despite the moderation in March, industrial production growth averaged 6.2 per cent in January-March, up from 5.9 per cent in Q4 (October-December), it said.
The uptick in average industrial production growth, implies that the overall industrial activity strengthened in Q1 (January-March), “supporting our view of a pickup in GDP growth to 7.7 per cent year-on-year in Q1 from 7.2 per cent in Q4”, the report said.
The report further noted India is expected to witness cyclical recovery led by both investment and consumption. But factors like rising oil prices as well as tighter financial conditions are expected to drag down growth rates. “While we remain optimistic on the near-term growth outlook, we expect the adverse impacts of rising oil prices and tighter financial conditions to slow growth further out,” Nomura said.