$5 trillion economy by 2025

In the article,  “Not by wishful thinking”  the author  R.  Nagaraj in the Hindu has discussed how realistic is the PM Modi’s s economic target –to grow India into a $5 trillion economy by 2024. Currently, India is $2.8 trillion economy and GDP rate is 6.8 percent  in   the last financial year 2018-19,  which was a five-year record low. The country is still in the middle of an economic slowdown, plagued by demand woes and low private investments. Global factors such as  the ongoing US-China trade war or a possible global recession going forward won’t help the matter either. There are high chances that Brexit will also curtail India’s export. Moreover, India’s per capita income should rise to $3,500 by 2024, and almost double to $4,000 by 2025. We wonder how , economies, that have a significantly higher informal sector employment, like India with  high level of unemployment  and lower per capita income  help in accelerating the Saving Rate which is a primary condition for higher growth rate?

 Every nation has got the right to dream of bigger achievements in economic and political fronts to gain global leadership position and to make their citizens economically powerful , so that , they can lead dignified lives . But, achieving such an ambitious growth target calls for pulling all the economic growth levers across all the three sectors of agriculture, manufacturing and service through,  higher investment, exports and stable exchange rate. Hence , if the present government pays more attention to economic agenda than to non economic agenda we may reach the goal of $5 trillion economy by 2024 .