What! Is that really possible? , Did I read it right? Or I was just in the trance of my sleep?
In a developing country like India, where the numbers of beggars are more than the affluent ones, how come it strike 10 trillion USD by 2030?
Well reader: You must not have gone through the news for the past few days. There’s a headline announced regarding the economy of India.
What’s the breaking news?
Recently, the secretary of the Department of Economic Affairs, Ministry of Finance, Subhash Chandra Garg, addressed the 6th Growth Net Summit. It was organized by the Ananta Centre, Confederation of Indian Industry and Smadja.
There: Mr. Garg said that the Indian economy is on the verge of a “take off.” He expects India to be the world’s third largest economy by 2030!
Well, that’s a good approach.
By 2030, Garg thinks that the GDP of India will rise to 10 trillion!
If that really happens … That’s a WOW moment for us Indians! At least we’ll move a step ahead toward the developed countries.
This does not end here.
Garg added that a ‘sustained’ average growth of 8 % clubbed up with a presumed devaluation of Indian rupee is likely to raise India to the mentioned position.
To quote him:
“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.”
So, you can imagine what a proud moment it will be for you by 2030.
Well: This was not the case in the days of history.
40 years after independence, the growth of the country was hardly at a rate of 3.5 %. And look what’s happening today! Now, the rate has gone up to 7 – 8 % at an average. By these words, Garg marked the Platinum Jubilee of the Institute of Cost Accountants of India. Thanks to them though.
Further, Garg made it clear, “By 2030, we can legitimately expect to be a USD 10 trillion economy. That is the challenge. That is also the opportunity.”
Look at the determination of Garg! Well, that’s worth commendable!
Since the average growth now is near about 8 %, Garg noted to stick to that. He said that if we maintain that growth rate, we can expect the country to be the third largest economy in the world.
This thought of the rise of the Indian economy did not come to Garg’s mind overnight.
Something must have triggered him.
It was the World Bank:
As soon as the World Bank put India to number six in terms of GDP, Garg felt elated. He expressed his opinion that India would climb to number three by 2030.
When asked about the fiscal management, Garg said that although this is the year of elections, the Fiscal development will not experience any deterioration.
The 3 % deficit that is there in the fiscal management will be sorted out shortly.
So, you can expect a betterment of India by 2030!
Now: Here comes the million dollar question!
How can India be a $ 10 trillion economy by 2030?
Well, this is not magic. No magician can use his magic wand to change the situation overnight. Attaining this position requires both time and effort.
This answer has been provided by Mohandas Pai, the founder of Aaron Capital. At the National Stock Exchange meet, Pai exclaimed:
It is the job of the tech entrepreneurs to drive India’s growth. Already our country is in the top three in terms of PPP. And by 2030, if India can be among the top five in terms of GDP, that’ll be a massive success for the country’s economic management.
Pai focused on different ways that can be adopted to make India a $ 10 trillion economy.
1. A consistently growing economy
Between the years 1991 to 2017, India’s GDP grew from $ 275 billion to $ 2.25 trillion. This is a clear indication of 8.5 % CAGR (in dollars).
So, if you pay attention to the data, you will find that our economy is growing at a rocking speed!
2. A share of larger GDP than OCED from the emerging markets by 2021
Today, the OCDE member nations are ruling the global economy. Since the emerging markets are capturing a larger share in the world GDP, Pai said that they are the growth drivers.
Pai took the growth of China as an example to illustrate that of India’s. He is hopeful about following the policy of China.
3. Strong industrial base of the country
Being the third largest in production of steel, cement and telecom, you can already understand the strength of India’s industries.
4. A pack of young population
Studies reveal that by 2020, the average age of India will result in 29 years. While on the other hand, Europe will have 45 years, China 35 years and US 31 years.
So, India is the youngest country with a handsome population.
5. Adequacy of savings and investment in India
Savings have become stable while consumption has risen.
Consumption: 70 % GDP
Investment: 30 % GDP
Both the service sector and manufacturing sectors to contribute to the GDP of the country.
6. Development in the infrastructure of higher education
India constitutes of:
So, by 2030, the number of young professionals will amount to nearly 70 million.
7. The emergence of start-up ecosystem creating a $ 10 trillion economy
Startup business in India has grown by almost 270 %.
India has 26,000 startups. In terms of startups, we are the second largest in the world.
Every year, nearly 6500 – 7000 startups are opened. Of these, 1200 gets funded. So, in terms of value, it amounts to $ 90 billion.
The dominant states cultivating startups are: Bangalore, Delhi and Mumbai.
8. $ 175 billion contribution by the IT sectors
4.2 million of the Indian population are connected to IT sectors. Among the 10 top-notch software companies, 5 are Indian.
Hence By 2030, India will have 100,000 startups. This will yield to a value of $ 1 trillion.
So, we can expect India to be a ‘digital economy’ by 2030!