Cabinet Secretary PK Sinha calls for meeting on USD 5 trillion economy roadmap
New Delhi | Jagran News Desk: Cabinet Secretary PK Sinha has called for a meeting on Monday to discuss the vision, policy intervention, investment, and departmental responsibilities towards to achieve the target USD 5 trillion economy by 2025.
Union Finance Minister Nirmala Sitharaman had announced that India will aim to reach the 5 trillion economy goal by 2025
Sinha has called for the meeting where eight secretaries forming several groups -- social, health, finance and economic -- will deliberate on a roadmap to achieve the target and which department will do what.
The finance group comprises Finance, Revenue, Expenditure, DFS, MCA, DIPAM, and DPE secretaries. The groups will holistically see which sector can contribute to year plan as well as in the mid-term till 2022, official sources said.
"From $1.85 trillion in 2014, the economy has reached $2.7 trillion marks. We can very well reach $5 trillion in the next few years,” said Finance Minister Nirmala Sitharaman while unveiling the budget 2019.
"The road to a $5 trillion economy by 2024-25 would need investment in infrastructure, digital economy and initiatives to be proposed for kick-starting the virtuous cycle of investments,” she added.
The Economic Survey has pegged a GDP growth rate of 7 per cent for FY20, up from 6.8 per cent in the previous fiscal. And to achieve the $5 trillion economy, the Survey has laid a road map where it says India must grow at 8 per cent.
In the last fiscal due to slowing growth and investment as well as demand and consumption, the economy hit a rough patch of a five-year-low growth of 6.8 per cent.
The Economic Survey portends bright prospects for economic growth. The Survey said its theme is about enabling a "shifting of gears", "to achieve the objective of becoming a $5 trillion economy by 2024-25, as laid down by the Prime Minister".
For this, "India needs to sustain a real GDP growth rate of 8 per cent"."It makes the case for investment, especially private investment as a key driver, that drives demand, creates capacity, increases labour productivity, introduces new technology and generate jobs," the Survey added.
It also suggested that "exports must form an integral part of the growth model because higher savings preclude domestic consumption as the driver of final demand".
But the Budget did not mention any steps to boost exports. The Survey stated "a virtuous cycle or a vicious cycle".
It says "when the economy is in a virtuous cycle, investment, productivity growth, job creation, demand, and exports feed into each other and enable animal spirits in the economy to thrive".
It also discusses the case of growth stories in China, Thailand, Indonesia, and South Korea to highlight the issue of Gross Capital Formation - savings and investments contributing to GDP in these countries.
(with agency inputs)
Posted By: Aalok Sensharma