"Aiming For 35 Trillion Dollar Economy In 25 Years": Piyush Goyal At NDTV Conclave
India aims to become a $35 trillion economy in 25 years, with a plan to add $30 trillion to its economy in the coming years, according to Union Minister Piyush Goyal.
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Posted 8/26/2023, 5:08:52 AM
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India is projected to become the third largest economy in the world in the near future, but it needs to continue implementing reforms, improving infrastructure, and investing in education, according to World Economic Forum President Borge Brende at the B20 Summit in New Delhi.
India's economy is facing challenges as GDP growth declines, investment demand weakens, inflation rises, and job creation remains a major concern, highlighting the need for a comprehensive economic plan to address these issues.
India's GDP grew at a rate of 7.8% in the April-June period, fueled by a strong services sector and government infrastructure spending.
The economist Tharman Shanmugaratnam highlights India's challenges in achieving sustained economic growth, addressing social and economic disparities, and integrating with China and ASEAN. He emphasizes the need for India to focus on education, increase exports, reform employment and land acquisition laws, and take advantage of its untapped potential.
India's economic rise is seen as inevitable due to factors such as a consumer boom, context-appropriate innovation, a green transition, a demographic dividend, access to finance, major infrastructure upgrades, policy reforms, geopolitical positioning, and a diaspora dividend, although challenges such as unbalanced growth, unrealized demographic potential, and unrealized ease-of-business and innovation potential still need to be addressed.
India's economic growth is estimated to be closer to 7.5%, with the country's first quarter growth at 7.8%, reflecting India's increasing stature in the world.
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With the right reforms, India has the potential to become the next engine of global growth, benefiting from major economic re-alignments caused by China's slowdown and the US diversifying its supply chains. Major corporations are already investing in India, recognizing its potential. However, India needs to overcome challenges such as high tariffs, infrastructure improvements, and regional cooperation to fully realize its manufacturing potential and attract foreign investment.
India's goal of becoming a $5 trillion economy may be challenged as economists predict that nominal GDP growth may fall below the budgeted estimate of 10.5% for the current fiscal year, primarily due to subdued wholesale inflation.
India's goal of achieving 6.5% real GDP growth in FY24 may be complicated by lower-than-anticipated nominal growth, potentially delaying the country's aim of becoming a $5 trillion economy by another year.