MNA � If Islamic Republic of Iran plans to grow its economy from current around $400 billion to $1 trillion by 2025, it should focus on the growth driving sectors. The segmental growth estimates may be useful as a blueprint for a long-term economic vision, Sourajit Aiyer a leading Indian economist maintained.


�Such a high estimate may seem daunting, but countries like China and Malaysia achieved the decadal double-digit growth in the initial years of their growth-journey,� he maintained.

Elaborating on the capabilities of different sectors of the Iranian economy, he said, �it is estimated that around 54% of gross domestic product (GDP) comes from services, mainly from trade and transport sectors.�

The expert said that services could also include ramping up the quality of skill-centers, to improve productivity and employment. 'All these would expand its addressable consumer-base and purchasing-power.�

As for the share of industrial sector in improving Iran�s growth rate, Aiyer said that �around 36% of Iran�s GDP comes from industry, in line with the average 30-35% seen in large emerging markets. So, if Iran�s industry has to hold itself at the 30% proportion, it has to grow at bigger rate.�

�In Iran, import comprised 21% of GDP, which is 60% of its share of gross investment. This is similar to the experience of recent industrializing nations, who saw their share of imports to be 50-60% of their share of investment. Iran has to continue this trend.�

Emphasizing the need to improve the agriculture productivity, he said, �For Iran to achieve productivity improvement, it has to re-skill unproductive labor for high-growth sectors like construction, transport and retail.'

On the areas that Iran has to invest to achieve the goal, he said �Iran needs affordable housing, urban transport and completion of economic corridors that would connect its commercial zones with the underdeveloped districts.�