Manufacturing Share Remains Key Challenge For India's Economy, Says NITI Aayog Vice Chairman
New Delhi, Sep 9: NITI Aayog Vice Chairman Ashok Kumar Lahiri on Wednesday said the Indian economy has been doing reasonably well and that Asia's third-largest economy will regain its mojo and return to a current account surplus soon. Economy to regain momentum Lahiri further said the major challenge the Indian economy faces is the low share of manufacturing in India's overall GDP. Mumbai,…
New Delhi, Sep 9: NITI Aayog Vice Chairman Ashok Kumar Lahiri recently stated that while India's economy is performing well, the country's low manufacturing share remains a significant challenge. Speaking at the Global Fintech Fest 2026, Lahiri highlighted that India's economy grew at a faster-than-expected 7.8% in the April-June quarter, demonstrating resilience despite global uncertainties.
Regarding foreign investment, Lahiri emphasized that it is domestic savings, not foreign savings, that should primarily drive economic growth in India. He noted that the United States historically imported capital from Europe, while East Asia consistently generated current account surpluses through foreign direct investment and foreign portfolio investment, with the majority of investment financed by domestic savings.
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