Davos, Switzerland, January 21: Union Minister of Electronics and Information Technology, Ashwini Vaishnaw, forecasted India's economic growth trajectory at 6-8% in real terms and 10-13% in nominal terms over the next five years. Speaking at the 'Bet on India - Bank on the Future' session, organized by the Confederation of Indian Industry (CII) in collaboration with EY, coinciding with the World Economic Forum (WEF) 2026 at Davos, Vaishnaw emphasized the government's commitment to improving the ease of doing business.
"India is poised to sustain growth at 6-8% in real terms and 10-13% in nominal terms, underpinned by moderate inflation and robust economic performance," he remarked. Vaishnaw also spotlighted the government's efforts to simplify procedures, citing the drastic reduction in the approval time for telecom tower installation permits—from 270 days to just 7 days, with 89% of approvals granted instantly.
However, he noted the need to bridge the gap between policy intent and execution, and stressed the importance of transparent communication of challenges within the industry. He also mentioned the need for standardized data localization norms, particularly as the US and Europe evolve their regulations.
Rajiv Memani, President of CII and Regional Managing Partner for EY’s Africa-India Region, emphasized the necessity to increase India's per capita income fivefold by 2047. He highlighted India's efforts to diversify its trade partnerships, particularly with the Middle East, Asia Pacific, and the UK. Memani also praised the country’s domestic reforms, including labor laws and the Goods and Services Tax (GST), which helped reduce tax burdens on essential consumer goods.
Chandrajit Banerjee, Director General of CII, pointed out the timeliness of the discussion, as India stands out amid global economic uncertainties. He described India as a stable and scalable market with long-term opportunities, especially as the world grapples with rapid technological change.
In another discussion at Davos, Vaishnaw rejected the International Monetary Fund (IMF) Managing Director Kristalina Georgieva's claim that India belongs in the second tier of AI economies. "India clearly belongs in the first group globally," Vaishnaw countered, referencing Stanford's ranking of India as third in terms of AI penetration, readiness, and talent.
Addressing Georgieva directly, Vaishnaw stated, "I disagree with your classification. India's AI progress positions it firmly in the first group." He also outlined India's comprehensive AI strategy, covering five critical layers: application, models, chips, infrastructure, and energy. Vaishnaw emphasized India's growing autonomy in the global tech arena, charting a distinct path without being beholden to the paradigms set by the US or China.
