India's 7.8% growth reflects resilience, data centres to get $200B

Piyush Goyal lauds India's 7.8% Q1 growth as a sign of resilience. He projects over USD 200 billion in investments for the data centre industry, which will help India become a USD 30 trillion economy by 2047.

India's 7.8 per cent economic growth in the April-June quarter reflects the country's resilience despite wars, global uncertainty and volatility, Commerce and Industry Minister Piyush Goyal said, adding that investments of more than USD 200 billion could flow into the country's data centre industry.

Speaking to the media after a roundtable with stakeholders from the data centre industry, Goyal said India is well placed to emerge as a major global hub for data centres. "We are proud of the people of India who even in these very unnerving and difficult times with two wars raging on, global uncertainty and volatility have given India 7.8 per cent growth in the quarter April to June 26," Goyal said.

Data Centre Sector to Attract Major Investment

He said emerging sectors such as data centres, semiconductors and artificial intelligence, along with India's expanding manufacturing base, would support economic growth in the coming years and help the country move towards becoming a USD 30 trillion economy by 2047. "Data center and semiconductor industry, the artificial intelligence foray of India, the increased manufacturing base that India has become for global quality products are all elements which will power India's growth in the years to come to greater heights and help us achieve a USD 30 trillion by 2047," he said.

On the data centre sector, Goyal said discussions with companies showed strong investment interest, with the industry having the potential to attract significantly more than USD 200 billion. "Nothing less than USD 200 billion can be seen coming into the data center industry," he said.

Goyal added that some large hyperscalers, international investors and Indian companies participating in the discussions believed even that estimate was conservative. "Some of the participants, particularly the large hyperscalers, international investors and Indian companies looking to invest in data centers indicated that this is a very low figure and India has the potential, the demand, international interests and capabilities to aspire for much more," he said.

Improving Ease of Doing Business

The minister said the roundtable also focused on further improving ease of doing business for the sector. He noted that several issues raised by the industry during earlier interactions had already been addressed through coordination between central government departments and states. "We go back from this meeting educated, with lots of ideas how we can make India the data center of the world," Goyal said.

Goyal Responds to Criticism

Responding to criticism from opposition parties over the economic growth figures, the minister said the same system had been used for years to compile the country's economic data and argued that questioning the figures amounted to undermining the efforts of Indians contributing to economic growth.

International Engagements and Investor Enthusiasm

Goyal also referred to his recent engagements in Japan, saying his interactions with businesses covered sectors including semiconductors, shipbuilding and ship repair, artificial intelligence and data centres, automobiles and components, electronics, engineering and pharmaceuticals.

He said discussions with companies and investors showed enthusiasm across these sectors as India seeks to attract investment and expand its manufacturing and technology capabilities. (ANI)

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