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Key Points

India's Finance Commission chairman NK Singh sees massive investment potential in the country's unsaturated domestic market. He highlighted India's impressive 7.8% GDP growth in the first quarter of 2025, surpassing expectations. Singh emphasized that structural reforms and GST changes are creating a favorable environment for both domestic and foreign investors. With per capita income growing six times faster than historical rates, India is on track to become the world's third-largest economy.

Key Points: NK Singh Says India's Unsaturated Market Offers Huge Investment Potential

  • India's real GDP growth surged to 7.8% in April-June 2025 exceeding expectations
  • Per capita income growing at 6% annually, a sixfold increase from past decades
  • GST reforms will enhance fiscal space and boost investor confidence
  • Population growth below 1% combined with 6.5% nominal income growth creates ideal conditions
2 min read

India's unsaturated domestic market offers huge opportunities for investment: 15th Finance Commission chief NK Singh

Finance Commission chief NK Singh highlights India's 7.8% GDP growth and unsaturated domestic market as major investment opportunities at Kautilya Economic Conclave

"The power of compounding implies that per capita income could double by the end of this decade, a remarkable feat in any recent experience. - NK Singh"

New Delhi, October 3

Highlighting India's growing economic potential, the 15th Finance Commission Chairman NK Singh stated that the country's large unsaturated domestic market offers significant opportunities for private investment, public-private partnerships, external private investment, and internal resource mobilisation.

Speaking on the sidelines of the 4th 'Kautilya Economic Conclave 2025' in the national captial on Friday, Singh said, "We are at the inflexion point when there are many virtuous circles that will enable us to effectively address the headwinds that may be before us."

During his address at the opening session of the conclave, Singh outlined India's macroeconomic strengths and growth trajectory.

He pointed out that India remains the world's fastest-growing major economy, with a robust macroeconomic foundation, and is on course to become the third-largest economy globally.

Citing recent economic data, Singh said, "In April-June 2025, real GDP growth surged to 7.8 per cent, surpassing expectations. Even after recalibration, the Reserve Bank of India expects a conservative GDP growth estimate of 6.8 per cent for FY 2025-26. These are not small achievements."

He emphasized that India's structural reform process continues at a formidable pace.

According to Singh, the far-reaching changes to the Goods and Services Tax (GST) under the current leadership will enhance fiscal space, boost consumption, improve ease of doing business, reinforce investor confidence, and contribute to higher economic growth.

"It would be an important factor in mitigating the adverse effects of external factors," he said.

Singh also highlighted India's historical growth trends. "India's average real growth for many decades was around 3.5 per cent with population growing at just over 2 per cent, resulting in per capita income growth of just 1 per cent," he said.

Singh noted that with the population growth rate now below 1 per cent and nominal income growth above 6.5 per cent per annum, per capita income is currently growing at 6 per cent, a sixfold increase compared to the past.

"The power of compounding implies that per capita income could double by the end of this decade, a remarkable feat in any recent experience. This is surely the path to prosperity," Singh said.

He added that achieving the common quest for development would require real per capita GDP to grow at over 7.5 per cent.

- ANI

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Reader Comments

R
Rohit P
As a small business owner, I'm cautiously optimistic. The GST reforms mentioned are much needed - if they actually simplify compliance, it will be a game changer for MSMEs. Let's see implementation on ground.
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Sarah B
The per capita income doubling by end of decade sounds ambitious but achievable. However, we need to ensure this growth is inclusive and reaches rural areas too. Development should be for all Indians, not just urban elite.
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Arjun K
This is exactly what foreign investors want to hear! India's unsaturated market is our biggest strength. With proper infrastructure and policy stability, we can attract massive FDI. Jai Hind! 🚀
K
Karthik V
While the numbers look good, I hope this growth creates quality jobs. Many engineering graduates are still struggling to find suitable employment. Growth should mean better livelihoods for middle class families.
M
Michael C
The population growth rate below 1% combined with 6% per capita income growth is a powerful combination. This demographic dividend could really propel India forward if managed well. Exciting times ahead!

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