Will Indian economy move from $2 tn to $20 tn by 2025? - TeleAnalysis

Narendra Modi, Prime Minister, India

According to IMF, US economy was $17.4 trillion, China was $10.4 trillion and India was $2 trillion in 2014. Prime minister Narendra Modi’s vision is to take Indian economy from $2 trillion to $20 trillion but the big question is will it happen and why when?

For taking Indian economy to $20 trillion, Modi said, “It will take hard work, sustained commitment and strong administrative action.”

Let’s see what all Modi government has done in the last 8 months which make us believe we will reach closer to $20 tn by 2025.

First, implementing GST from FY 2015-16 will be a major breakthrough as it has the potential to make India competitive and attractive for investment.

Second, energy sector reform carried in the last 8 months be it coal blocks allocation through auctions, change of mining laws to facilitate efficient mining and reviving long pending projects in Nepal and Bhutan. All this needs to continue as it helps in adding additional MW capacities in a time bound manner thereby making 24X7 power a reality, helping industry sectors as they are deprived of 24X7 power and also quality power.

Third, infrastructure is being given a boost as greater investment is planned in both railways and road sector. New approaches and instruments are being put in place to unlock potential in railways and road infrastructure. This will help all industries in movement of goods.

Fourth, transparency and efficiency in governance, and institutional reforms are essential elements for rapid and continuous growth. These, along with a positive regulatory framework, tax stability, and ease of doing business, are being pushed ahead at top speed.

The setting up of the National Institution for Transforming India, NITI Aayog, is a step in this direction to take the country forward on the path of cooperative federalism, with a competitive zeal.

Fifth, India is being made an attractive destination for investment by raising FDI caps have been raised in insurance and real estate. FDI and private investment are also being promoted both in defense and railways.

Sixth, Land Acquisition Act has been amended to smoothen the process giving thrust to infrastructure and manufacturing, while protecting the compensation to farmers.

Seventh, agriculture productivity needs to be increased through technology, increasing soil fertility, producing more crop per drop, and bringing the latest from lab to land.

Eight, One has to reduce wastage and prevent misuse. All this will lead to increase in efficiency in each and every process. Digital India will reform government systems, eliminate waste, increase access and empower citizens. It will drive the next wave of growth, which will be knowledge-driven.

Ninth, we need to use technology in each and very aspect as we are leaders in software. We need technology to deliver good governance

Apart from all this we need to grow our GDP to the highest level and grow between 8-9 percent so that we can become the largest growing economy in the world and reach our target of $20 trillion by 2025.