Can India be $ 5 trillion economy?
India is a fast-growing country. With the country making headlines everywhere, the talk of the economic growth of the country has taken the world out for a spin. Ever since the government changed hands, the country has made many significant improvements.
Taking the world on, India’s Moon Expedition by ISRO has helped prove the point that India, too, can do everything. However, with the US and the China economies slowing down, it is quite natural for people to be worried. Furthermore, the recent traction between Pakistan and India over the Kashmir issue, wherein the special status of the state was revoked, has put some stress.
However, to make things easier and simpler, things do look pretty good for our country, economy-wise.
The Question: Can India be a $ 5 trillion economy?
Right before the elections, PM Modi had talked about his ambitions for the India of tomorrow. In his speech, he addressed his dream of making India a $ 5 trillion economy by the year 2024. Although PM Modi cannot be taken as a man with small or unachievable ambitions, he said that it is pretty doable for India.
However, if we look at it realistically, the dream about the challenges the Indian economy would have to overcome. Since he was elected the PM for the second time, Modi has held on to his ambitions and dreams.
But as things stand, India would need to raise its value against the dollar to catch on to Modi’s dreams. What’s more is that in the first quarter of 2019-2020, the GDP of the country fell to 5.6%, which is the lowest in the past five years.
Considering the previous rates, which was a bit over 6% almost every year, India had needed about 12% growth overall. Furthermore, as per analysts, India’s benchmark to grow to a $ 5 trillion Economy may seem a bit far off. According to the numbers, if India continues to grow at a steady rate of 6%, the dream may take about a decade to achieve.
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India’s greatest challenges
There are two primary challenges between India and the 5T dream, and they are:
- Inflation rates, which stand just above 3%, and the global inflation rate isn’t too high, and
- Rupee-dollar exchange rate goes up and down from time to time.
How can India become a 5T economy?
If India has to become a 5T economy, here are some changes that the country and its government should make:
- Manufacturing Ecosystem
With the trade war between America and China, the world needs a place for manufacturing. This can be India’s time to shine. Setting up a place that is manufacturer friendly and helps various types of businesses manufacture their products would be a good start. Furthermore, the businesses that are already in the run could make use of better Accounting and Bookkeeping Service providers in Mumbai or any other place.
2. Transforming the service sector
The service sector could be reformed and better tax reforms could help the country to grow. With a change in functionality, the businesses could make use of the best accounting services in Mumbai to stay functional.
To make sure that India grows, making use of the Best Accounting Outsourcing Service in Mumbai or any other place would be helpful.