The Indian economy is at a “take off” stage and is expected to be the world’s third largest by 2030 with GDP worth $10 trillion, Economic Affairs Secretary Subhash Chandra Garg said.
“Good days are ahead and lot of good work is happening in the economy. The economy is on a stage of take-off where Indians can legitimately hold their heads high,” he said here.
Garg was speaking at a function to mark the platinum jubilee celebrations of the Institute of Cost Accountants of India.
Garg added, “By 2030, we can legitimately expect to be a $10 trillion economy. That is the challenge. That is also the opportunity," he said. “In the first 40 years of independence, the country hardly grew at 3.5 per cent and today, 7-8 per cent is the norm.”
His comments also come close on the heels of latest World Bank data showing that the country emerged as the sixth largest economy in the world, surpassing France, in 2017.
"Eight per cent growth is very much achievable... If we keep that up…we can look forward to be an Indian economy of $10 trillion…Which would be the third largest economy in the world," Garg finished.
Soon India will trail only Germany and the "big three" of the U.S., China, and Japan. China's GDP is $23.19 trillion exceeds the U.S. GDP of $19.42 trillion. However, the U.S. is way ahead of China in terms of GDP per capita in nominal terms.
However, the number does not mean that the people of India will be well off. Forbes notes that India’s headline rate of economic growth may exceed 7%, but that breaks down to around 5.8% annual growth in GDP per capita plus 1.3% annual growth in population. That kind of rapid population growth does make the economy bigger. But it doesn't help where it counts: it doesn't make people any better off.
For example, Brazil's output per capita is more than five times that of India while it is the world's eighth largest economy by nominal GDP.
(The above story first appeared on LatestLY on Jul 14, 2018 11:52 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).