New Delhi, Mar 2: "India can scale up its GDP by $ 50-100 billion dollars if it focusses on development of labour intensive agricultural products", said a U S Professor. India's national economic survey has pegged the country's economy at just over one trillion dollar.
Mr Daniel Rosen, Adjunct Professor, School of International and Public Affairs, Columbia University, said the coming 2-4 years can provide a golden opportunity to India to grow if it could put its trading infrastructure in shape in time. " Pricing for Indian exports such as iron ore and steel should be optimal and the next 2-4 years may be the golden era for FDI in India, especially if this can be directed to sectors that will enjoy long-term growth and not compete head to head," Rosen, Visiting Fellow, Peterson Institute for International Economics, US, said at an interaction.
Participating in a discussion on "China's Macro Re-direction and Implications for India," Rosen , Principal, China Strategic Advisory, New York, said India should capitalize on opportunities in services, infrastructure, research and development, information technology and areas of heavy industry where China might see a reversal in the coming years.
On the enormity of challenge for a country like India, he said taking 20 per cent of China's current export share would mean producing an additional 250 billion dollars a year in addition to serving rising domestic demand.
If China decided to shift from investment-led heavy industry growth towards consumption-led growth through increased imports, it will lead to a greater call on global resources. "It is, therefore, essential that India similarly redoubles its efforts towards building resource efficiency into its economic development model" instead of replicating Chinese model of growth, Rosen argued at the interaction held in Mumbai.
Foreseeing more dramatic macroeconomic policy changes in China, he said these will have major psychological, political and economic implications for China, India and the rest of the world.