When Prime Minister Narendra Modi, currently in his second term spoke to a slew of ministers recently, the main objective and theme of his talk focused on the area of Indian economy. How can the Indian economy leapfrog the others and rise over existential challenges to become a behemoth that it is so expected to be?
In fact, whether it sounds pragmatic or something that’s achievable but only in hearsay and fiction, the fact of the matter is that the Indian Prime Minister has zeroed down on a significant (rather, lofty… the adjectives run endlessly so) goal for the Indian economy.
Mr. Modi, ever keen on development and reforms has given Indian economy a mighty challenge; that of becoming a $5 trillion economy by the year 2024.
To that regard, given that 2020 is almost upon us and that there’s not an awful amount of time remaining before India can go on to achieve its daring goal, one can very well imagine that the honourable Prime Minister’s lofty goal might be the target of a lot many jokes, and so on and so forth.
But it’s not over when Mr. Modi is batting- isn’t it? There’s always a way out. And guess what? There’s a clear-cut roadmap ahead with Mr. Modi in order to see that the Indian economy goes on to become the best version of itself.
So, very quickly then. How’s India to achieve the overwhelmingly challenging growth rate that its prime minister has envisioned for 2024?
A renowned publication highlighted the fact that the PM’s envisioned expected growth rate is in nominal GDP terms. It would go on to state:
“The target of $5 trillion is in nominal GDP terms, a 7-7.5 per cent of real GDP growth and an average inflation rate of around 4-4.5 per cent translated into a nominal growth of 11.5 per cent, a ballpark calculation.”
Furthermore, the following is already in the public domain that-
To achieve this target India needs to grow at an annual average growth rate of 11.5 per cent in dollar terms for the next five years. In addition, Even if India’s real GDP grows as per the predicted growth rate of around 7.5 per cent in rupee terms for the next five years, it can easily cross the $5 trillion mark by 2024.