In 2018, PM Narendra Modi had talked about making India a $ 5 trillion economy by the year 2025 in Davos, Switzerland. Presenting the budget, Finance Minister Nirmala Sitharaman reiterated the same point. But in the next five years, there is no blockage in India’s 5 trillion dollar economy.
This is not a difficult thing. India can also grow faster than this.
According to the Business Today report, the speed that needs to be 5 trillion dollars to become an economy, India is rapidly developing it. Despite all the shocks like notebooks, at every scale of the development (between 11 and 12% per annum), India will achieve target of $ 5 trillion by 2025, provided the rupee-dollar rate is around 70 rupees. But by 2024, India could stay away from 5 trillion on every development scale.
How would that be?
In the dollar, the GDP measures the IMF or the World Bank. They calculate GDP (nominal) from GDP of India at current prices. If you look at India’s GDP at Rs 190 lakh crore in 2018-19, it would be worth 2.71 trillion dollars (at an average of 70 rupees per dollar).
According to the report, India has an annual growth rate of 11 percent GDP of $ 5 trillion in economy, 11.25 percent per year at 5.15 trillion dollars per year, at 11.5 percent annual rate of 5.22 trillion and 12 percent annually 5.36 trillion dollars can be an economy.
There is another way in which the GDP is measured by stable prices. This is linked to the GDP base year, which is currently 2011-12. In this, the ‘real GDP’ is measured, which does not include the effect of inflation. At the prices located, India’s GDP stands at around 140 lakh rupees. It is less than 50 lakh crore less than the GDP at constant prices. In this way it was just $ 2 trillion economy. Clearly, neither the government nor the IMF / World Bank is supporting this figure.
World Bank’s nominal GDP or current prices are stable inflation and annual inflation and GDP So if India registers an average GDP growth rate of 7-7.5 percent annually by 2025 and inflation remains in the 4 percent range, then India will not have any problem in becoming a $ 5 trillion economy. That’s why India should see a bigger dream now.