The underlying strengths of India indicate its potential to grow and become an economy worth $5 Trillion by the year 2025. Currently marked as world’s sixth largest economy, India is one of the fastest growing major economies, declared by the Ministry of Commerce & Industry. Over the medium term, the growth is projected to remain encouraging and optimistic for the country. The current structure of the economy and the emerging dynamics provide the grounds to the realization of the target.
To achieve the $5 Trillion mark, the Indian government is preparing district-level plans to promote ease of doing business in the country, while making India Market Entry easier for international businesses in order to increase its contribution to the national gross domestic product. Along with this, the government has several other plans to add to the growth of the economy. In the agriculture sector, the Government is planning to alter the policies and make a shift in focus from production-centric to income-centric. This will provide a broader scope towards the achievement of the required expansion of the sector.
Referring to the country’s ‘Make in India’ initiative, Prime Minister, Narendra Modi said that India has become a hub of mobile manufacturing, which has provided employment to around 4-5 lakh youngsters in the last four years and has helped the country save Rs. 3 lakh crores in foreign exchange. The Indian Tourism sector has also witnessed healthy growth and has created job opportunities for the country’s youth.
He further explained that the contribution of manufacturing and agriculture sector to the economy will be $1 Trillion each. Modi added that the Indian economy is growing at over 8 percent and in the next five-seven years, the economy will be worth $5 Trillion; and will rise further to $10 Trillion in the next decade. The Rs. 25,703 crore investment in the Indian convention center is claimed to create jobs for around 5,00,000 youngsters. The center is meant to reflect India’s economic progress and its rich cultural heritage.
By the Financial year 2024-25, the per capita income of the country is expected to rise by 125% to $3,650. Dynamics in the country’s population will be a key force in shaping India’s overall growth and also in the way how product markets develop as the preferences of the population evolve. Morgan Stanley’s report said that India’s millennial population of 400 million is largest in the world and is supported with around $180 Billion in spending power. With high smartphone adoption and widespread availability of mobile broadband infrastructure, the economy will become a disruptive force growing faster than what most businesses could ever expect.
The concerned groups had been asked to create a roadmap towards the achievement of a $5 Trillion economy by 2025. The prepared reports have been shared with the stakeholders for further suggestions. The availability of quality business consultancy services in India has propelled many international firms to enter the Indian market and establish their presence in the country. Increasing population and hence, the increased demand for products is the major hold behind the India market entry for multinational companies. This leads to effective growth in the Indian economy, thereby contributing to the achievement of such targets by the country.
Ref Links-
https://www.business-standard.com/article/news-cm/underlying-strengths-indicative-of-potential-of-india-to-become-5-trillion-economy-by-2025-118101200390_1.html
https://www.rediff.com/business/report/india-will-be-a-5-trillion-economy-by-2025-modi/20180920.htm
https://www.livemint.com/Politics/0e9KuMQkAFGczsLQH7eR3H/Indian-economy-to-reach-5-trillion-by-2025-says-report.html
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