Unsaturated Indian market offers huge investment; GST reforms key to tackle external factors, says Finance Commission chair

India’s economy is showing strong signs of growth, with opportunities for investment and development expanding across the country, 15th Finance Commission chairman NK Singh said on Friday.He noted that India’s saturated domestic market presents vast opportunities for private investment, public-private partnerships, foreign private capital, and mobilising internal resources.Speaking at the 4th ‘Kautilya Economic Conclave 2025’ in New Delhi, Singh said the nation is at a pivotal moment. “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,” he added.Singh outlined the country’s economic strengths, noting that it continues to be the fastest-growing major economy in the world and is on track to become the third-largest economy globally.He highlighted recent economic data, saying, “In April-June 2025, real GDP growth surged to 7.8%, 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.”The finance chief emphasised the impact of ongoing structural reforms, particularly the recent changes to the Goods and Services Tax (GST). According to Singh, these reforms will create more fiscal space, encourage consumption, improve the ease of doing business, boost investor confidence, and support stronger economic growth. “It would be an important factor in mitigating the adverse effects of external factors,” he said.Reflecting on India’s growth history, Singh pointed out that decades ago, average real GDP growth hovered around 3.5% while population grew just over 2%, resulting in per capita income growth of only 1%. Today, with population growth below 1% and nominal income rising above 6.5% per year, per capita income is increasing at 6%, a sixfold improvement from the past.Singh added, “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.”He concluded that for India to achieve broad-based development, real per capita GDP must grow at over 7.5%.