India's domestic market presents significant opportunities for investors due to its unsaturated nature and strong growth potential, according to NK Singh, Chairman of the 15th Finance Commission. Speaking on the sidelines of the 4th 'Kautilya Economic Conclave 2025' in New Delhi on Friday, Singh highlighted the country's robust macroeconomic foundation and its status as the fastest-growing major economy in the world.
Singh emphasized that India is at an "inflexion point" where various positive factors are converging, enabling the country to effectively navigate potential challenges. He pointed to the large, unsaturated domestic market, rising per capita income, and ongoing structural reforms as key drivers for private investment and economic expansion. These factors create a favorable environment for private investment, public-private partnerships, external private investment, and internal resource mobilization.
Recent economic data supports Singh's optimistic outlook. Real GDP growth surged to 7.8% in April-June 2025, exceeding expectations. Even after recalibration, the Reserve Bank of India (RBI) projects a conservative GDP growth estimate of 6.8% for FY 2025-26. Singh stressed that these figures are "not small achievements".
Singh also highlighted the impact of ongoing structural reforms, particularly the Goods and Services Tax (GST). He stated that changes to the GST will enhance fiscal space, boost consumption, improve the ease of doing business, reinforce investor confidence, and contribute to higher economic growth. These reforms are expected to mitigate the adverse effects of external factors and further propel India's economic trajectory. Singh hailed the GST reforms as a landmark for India's economy, calling the rate cut a “victory of the common man”. He said it has enlarged fiscal space, boosted purchasing power, improved ease of business and provided relief to ordinary citizens while creating a better environment for investors.
Reflecting on India's growth history, Singh noted the significant improvement in per capita income growth. Decades ago, average real GDP growth hovered around 3.5%, while population grew just over 2%, resulting in a mere 1% increase in per capita income. Today, with population growth below 1% and nominal income rising above 6.5% per year, per capita income is increasing at 6% annually – a sixfold improvement. Singh stated that this "power of compounding" implies that per capita income could double by the end of the decade, paving the path to prosperity. He also projected continued per capita income growth.
Singh believes that with prudent fiscal and monetary policies, India can push its growth towards 8% and sustain its development momentum. He emphasized India's strong macroeconomic fundamentals and its progress in becoming the third-largest economy globally.
