Growing Indian Economy

  • PM in his address to the people of India has said that India’s GDP has to reach the target of 5 Trillion $ by 2022.
  • He also emphasized on further targets on 10 Trillion $ by 2028-30.
  • Currently of GDP is around 2.5 Trillion $ if India continues to grow at 7 % per quarter and per year then we will reach the value of 4.9-5 Trillion $.

Way ahead:

  • The contribution of all the three sectors is important for our economy to grow at such fast pace.

Agriculture sector:

  • To achieve the target of 5 Trillion $ then Agriculture sector has to contribute around 1 Trillion $ for the economy.
  • To achieve this focus should be on improving Research and Development so that our agriculture becomes sustained and soil fertility is restored.
  • Archaic acts like APMC and ECA should be amended or scrapped and focus should be on building market infrastructure to add value-added chains.

Manufacturing sector:

  • It is substantial for a country to have a robust manufacturing sector to boost her exports and reduce imports.
  • Focus should be on creating infrastructure and addressing infrastructure bottlenecks

Service Sector:

  • So far the performance of this sector is good but highly prone to externalities from the west.

Future Concerns:

  • The present organizational and Institutional capacity should be enhanced and focus should be on improving infrastructure.
  • Addressing the Rupee slump is important and it artificially raises inflation and has a cascading effect.
  • On the glooming trade war, Indian exports especially from manufacturing could be hurt.
  • The future depends on how well the IBC code can handle and resolve the NPAs.
  • The broader focus should be on increasing regional GDP by 2 to 3 percent which will give life to Gandhian way of development where Mahatma envisaged development as growth of cottage industries.
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