India can grow 8% from 2016 to 2020

Goldman Sachs has forecasted that India’s economic growth can happen at 8% over 2016-20. It expects India's GDP to jump by 7.5% in FY'16. The reason is primarily attributed to the ease of conducting business and gains from higher education and technology convergence.

"A convergence of technology, gains in education, and improving ease of doing business due to less red tape ("TEE"s) could be the key drivers of growth, in our view, " Tushar Poddar, chief India economist, Goldman Sachs said.

Sachs has said that by 2020 the country’s economy has the potential to gain over 300 million more internet users and 50 million more high-school graduates. It has already been adding over 200 thousand bank accounts every day, and nearly 800 government services have moved online. At this pace the country can use its strength in the services sector.

After all, unlike most Asian countries India's potential is in it’s services sector.

"Our analysis shows that services have tended to be a much larger source of jobs in EMs compared to manufacturing. Over the next few years, large scale capacity expansion in manufacturing may be constrained due to weak global demand, as well as local impediments. Services are hence likely to drive economic growth and jobs, and this can play to India's strengths “stated the report released on Monday.

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