Tata Group Chairman, N Chandrasekaran, expressed optimism regarding the domestic economic growth and noted that despite a slowdown this year, India will remain the fastest-growing economy in the world.
Speaking at the global alumni meet of NIT Trichy in Chennai, the executive said that the decline in the pace of growth in the Indian economy is temporary and is expected to pick up. “Indian economy is very strong. Even with a moderation in growth this year, we will still continue to be growing better than any other country. We will be the fastest growing,” he said, reported Business Standard.
Elaborating on the major shifts around the world, he said that the transition to renewable energy, change in the global supply chain dynamics, and artificial intelligence (AI), all remained in line with the strengths of the Indian economy.
He further noted that 2025 is anticipated to be a ‘phenomenal year for AI’, with the sector expected to clock huge investments in small language models (SLMs) during the year, while large language models (LLMs) also set to play a role. “Small language models will have a deeper role to play because they will consume less energy, lower cost and give faster results. I feel this is going to be a phenomenal year for AI,” he stated.
Impact Of Slowdown In China
Notably, China used to account for 30 per cent of the global growth, however, this share has now declined to below 25 per cent. The executive said that the slump in the Chinese economy is also expected to play a crucial role in India’s space in the global economy going ahead.
“The estimation is that in the next three to four years it will fall below 20 per cent or less. They have issues. They have a huge dependency on the real estate sector, that is going down and it is going to take a while. In this context, with all the other business opportunities going for us, we have a tremendous opportunity. I don’t think our growth slowdown will continue, it will pick up,” he noted.
Challenges Going Ahead
The conglomerate’s executive pointed out that India will face issues such as elderly care, labour productivity, job creation, inequality, access to healthcare and education, etc moving forward. However, he pointed out that the country’s digital infrastructure could add significantly to its strengths.
“The digital infrastructure created in this country is ahead of anything that has happened anywhere else. We have our problems, we don’t always execute well. But we have some phenomenal digital systems, whether it is our payment system, Aadhar, healthcare, settlement systems, and retail banking systems. We have some of the finest digital systems. We have the talent too. To mind, all the major transitions which the world has to go through are playing to India’s strengths,” he stated.