BHUBANESWAR: World Bank Group President Ajay Banga on Thursday exuded confidence about India’s ability to sustained high growth and said the economy is well placed to achieve the 6.8–7.2 per cent growth projected for 2026-27 in the Economic Survey, provided the country continues to invest in skilling, infrastructure and business-friendly reforms.
Speaking to mediapersons during his visit to the Central Tool Room and Training Centre (CTTC) here, Banga said India has consistently demonstrated its ability to deliver high growth. “The real issue is not the percentage of growth. If India wants to become Viksit Bharat by 2047, then facilities like CTTC, the way skilling is being done here, and the commitment of people running such institutions are critical,” he said.
On global trade and the India-EU trade deal, Banga said bilateral and regional agreements have become increasingly important as the structure of global trade has changed. Over the last two decades, he said, global trade has quadrupled while the share of emerging markets has doubled from 20 per cent to 40 per cent, making countries like India central to global commerce.
"All trade deals are important. The number of regional and bilateral deals have doubled in recent years. But emerging markets like India are key components in trade. I think the India-EU trade deal could boost business confidence by lowering tariff and non-tariff barriers on both sides, provided it is phased carefully to protect domestic industries. But if you have to open up, you have to open up well," he said.
In the context of recent US tariff measures and rising protectionism, Banga said India should not be overly focused on tariffs but instead look at the opportunities available, particularly given the country’s vast domestic market and strong consumption demand.
"India’s vast domestic consumption demand provides a strong cushion against external shocks. India is a large country with very high domestic demand. That is a big opportunity in itself,” he underlined.
The WB president noted India's demographic advantage as around 12 million young people enter the job market every year. “If you skill them the right way, you can give them opportunities not just in cities, but also in villages, smaller towns and even overseas,” he said, pointing to CTTC as a model where skilling is driven by market demand, not just curriculum.
Banga referred to components manufactured for missions like Chandrayaan and platforms such as Tejas aircraft and said CTTC’s approach -- starting from industry demand, building the right skills and operating through a hub-and-spoke model with extension centres has made it largely self-sustaining, with minimal dependence on state funding.
Addressing concerns over job creation and infrastructure constraints, he said India has made admirable progress in the last decade. "There is expansion of airports, roads and digital infrastructure. The reality is infrastructure is being built. Do you want more infrastructure? Yes, because India is a large country with enormous opportunity in different regions. There are ways that jobs will get created. And we have talked about this in the World Bank very clearly, " he said.
Banga outlined three key pillars for creating jobs. "One is you must have infrastructure, not just physical, but also human capital, skilling, healthcare and education. Second, you must have the right business friendly policies. And there India has made some progress. But as you know, Prime Minister Narendra Modi is driving changes in land and labour laws. These are very important for continuing growth and ease of doing business in India, " he observed.
The government, he said, is the enabler, but jobs happen in the private sector. So what the country needs to do is create the right rules and regulations, besides financing the private sector, particularly MSMEs, he added.
The WB president also identified five sectors with strong job potential, including infrastructure and construction, agriculture, primary healthcare, tourism and value-added manufacturing. 'India is active on those. I think rural productivity and rural prosperity is very important. Small farmers need access to stronger markets and better inputs. And that's kind of what we are trying to do," he said.
India, Banga said, has made many strides on primary healthcare, but there is much more opportunity to deliver high quality primary healthcare and that will employ nurses, medical diagnostic technicians, midwives, not just doctors.
"India has also done a fairly good job on tourism. But to me, the opportunity in tourism is still ahead. Remember that the number of tourists India get is still a fraction of what cities like New York and Paris get. India has land, seas and mountains. It has fabulous people, great food, great culture, history and everything you want is here. If you cannot get higher numbers of tourists, then that is our opportunity lost as a country," he maintained.
Referring to Odisha, Banga said the state’s push in skilling, manufacturing and fintech, coupled with its mineral-rich base, positions it well for future growth. “The state is rich in minerals and metals. This is a huge opportunity for where we are going. So if you get infrastructure, policies and capital right, those 12 million young Indians every year have a very good future,” he added.