Current Growth Rate Can Peak Up To 10–12%, Says Jamshyd Godrej—NDTV Profit Exclusive

India can replicate the kind of economic growth which was clocked by China in recent decades, according to Jamshyd Godrej, chairman of CII- Sorabji Green Business Centre.

The Confederation of Indian Industry has always held the view that "there is no reason why India cannot achieve the growth rates that China achieved for many decades", Jamshyd Godrej said, while speaking exclusively to NDTV Profit on Wednesday.

However, scaling that kind of growth would require deeper coordination between India Inc. and the government, the industry veteran pointed out. "We need a very close coordination between the industry and the government on policy making."

China's gross domestic product grew at an average of 9.91% between 1979 and 2010. During this period, the country emerged as one of the top global manufacturing hubs.

The Chinese economy, however, lost pace following the Covid-19 jolt, with its growth rate being restricted to 5.2% in 2023. In comparison, India has emerged as the "world's fastest growing large economy" in the post-pandemic period. The country's GDP expanded by 8.2% in fiscal 2024.

The current growth rate of around 7–8% can peak up to 10–12% if there is strong infrastructure and legal support, said Godrej, who is also the chairman and managing director of Godrej & Boyce.

"The current growth rate can certainly go higher, CII believes. But for that we need higher infrastructural support. The legal support is also required. We have a good legal system in India with the independence of courts, but it is too slow," he said.

"Commercial and land disputes take years and years to settle, which shows it is not a very functional system," Godrej said, adding that as a vibrant democracy, India needs a more vibrant legal system.

In the absence of these reforms, it will be difficult to scale up the GDP growth from the current levels, he added.

The recently launched PM Internship Scheme is a "good idea", as industries across India face a shortage of skilled personnel, Godrej said. Currently, companies are spending significantly to train their workforce, he pointed out.

However, for such schemes to be successful, a shift in mindset is also needed, he said. "We need to respect the work by people who use their hands."

"There needs to be a shift in society to understand. Everybody does not need to rush after a BA or MA degree," he added.

On the contrary, highly-skilled workers like plumbers and electricians can earn significantly more, Godrej said. "Why don't we also celebrate these kind of skills?"

"For a vibrant democracy like India, there should be no shortage of jobs if you have skilled people," he further said.