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India’s economy is entering its “China 2005 moment,” according to K.V. Kamath, Chairman of Jio Financial Services — a phase when strong banks, reforms, and investment capacity could propel the country into its next decade of growth.Speaking at a fireside chat during CNBC-TV18’s Global Leadership Summit on Friday, Kamath expressed optimism about India’s growth trajectory, banking reforms, and the country’s ability to sustain high economic momentum.“India’s story is a very measured growth,” Kamath said. “We can aspire for a 10% growth rate and then we can achieve 8%.”He added that India’s governance structure allows for steady expansion, while higher growth remains within reach.“Given our governance structure, 7-8% growth is sustainable; 10% is aspirational but possible. That’s the pace we need for a stable transition to ‘Viksit Bharat 2047,’” he said. “We can think of it in two stages — from $5 to $10 trillion, and then $10 to $20 trillion by 2047.”Live EventsDrawing a parallel between India’s current economic phase and China’s banking-led expansion in the early 2000s, Kamath said the country is now entering a similar stage of capacity building.“Sometimes I look back and compare what I see ahead with China in the 2000-2005 period — when its banks began bulking up and growth accelerated to double digits,” he said. “Our steady growth of around 7% should similarly take us to that stage of bulking in the next few years.”Additionally, Kamath noted that multilateral institutions will continue to play a crucial role in supporting emerging economies, even as India progresses to the next stage of development.“Multilateralism isn’t going away. The next wave of development, especially in Africa, will still need multilateral support,” he said.On women’s participation in the workforce, Kamath said sustained growth would naturally drive inclusivity.“If India keeps growing at 7-8%, everyone will be mainstreamed, because that growth requires inclusive employment,” he said. “Today, more women are taking up STEM courses than ever before. With this evolution, I believe India will grow in a gender-neutral way.”‘Banks are strong, clean, and capable’Kamath said India’s financial system is well-positioned for the next phase of growth.“My biggest confidence comes from the fact that bank balance sheets are clean,” he said. “Banks are strong, well-capitalised, and technologically capable. They can compete. The challenge now is to understand how new players, fintechs or other agile technology-led companies, are operating, and to keep pace with them.”He urged banks to use technology more strategically.“Banks need to ensure that their tech spending is productive — acquiring the right technology, not just doing more of the same. They must disrupt themselves using technology.”Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onjio financial servicesIndia economic growthChina 2005 economic modelbanking reforms in IndiaK.V. KamathJio Financial ServicesIndia's GDP target 2047women in workforce Indiafinancial system India (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onjio financial servicesIndia economic growthChina 2005 economic modelbanking reforms in IndiaK.V. KamathJio Financial ServicesIndia's GDP target 2047women in workforce Indiafinancial system India(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
