'AI, greater market access key to India’s growth'

Deregulation, combined with the increased adoption of AI and a trade policy focused on greater market access, could be transformative for India in achieving a higher economic growth trajectory for an extended period, Franziska Ohnsorge, chief economist for the South Asia Region, World Bank tells Prasanta Sahu in an interview.

- FRANZISKA OHNSORGE, CHIEF ECONOMIST FOR SOUTH ASIA REGION, WORLD BANK

Access to 50% of the world's GDP through trade agreements would also boost FDI inflows to India. Excerpts:

Do you share the optimism of the Indian government that the recent reforms will boost consumption?

The government has had a series of reform efforts. The laws to reform the labour market were also passed several years ago, and there is now a renewed urgency in actually getting it implemented on the ground. The government's really trying to unlock growth, and that is one of the reasons why India remains the fastest-growing in large emerging markets. We expect a slowdown from 6.5% growth in 2025-26 to 6.3% in the next fiscal year. It might be a slowdown for India's terms, but by international standards, this is still robust growth.