‘India will continue to be a lower cost economy for two more decades’

Mumbai, 31 Oct: India will continue to be a lower cost economy for around two more decades, and it will be cheaper to design and manufacture products here for many years, Infosys’ co-founder Kris Gopalakrishnan said on Monday.
In the next three decades, India will reach where China is today by becoming a middle-income country with a per capita income of at least USD 6-7,000, Gopalakrishnan said while addressing the first convocation of Somaiya Vidyavihar University.
“India will continue to be a lower cost economy for the next 10-20 years, whereas the countries above us in development are all higher income countries. It will be cheaper to ideate, to design, to develop and manufacture products in India for many years to come,” he said.
It can be noted that labour arbitrage, especially on the services front, has been very helpful to the country’s growth. The IT sector which emerged out of it is now a USD 220 billion industry and supports millions of jobs. (PTI)
Gopalakrishnan further said the country will be “the best place to live, work and bring up a family over the next 30 years” and exhorted the students to make the best of the opportunity.
He said in the next 30 years, India will become the second or third largest economy in the world with a GDP of USD 10-15 trillion.
However, the country has to overcome problems and ensure that there is justice, equity and fairness, Gopalakrishnan said, adding that the entire world is afflicted with the same problems and India can be one of the leaders in addressing those.
“We have the knowledge, access to technology, and resources. We need to work hard to create a better India and a better world,” he added.
The country will be home to a fifth of humanity and one of the largest market opportunities because of the 1.4 billion consumers it has, he said, adding that these factors are helping attract all the major companies of the world.
He advised the graduating students to keep continuing with their education, and build a lifelong network of friends and colleagues. (PTI)