Journey To A 5 Trillion Dollar Economy

Good Morning, I am Sarvagnya.j.
s here to speak about the Positive Prosepects of

Our journey towards a 5 trillion dollar economy.
Cautious optimism is in order as India marks 75 years of independence and the

country moves toward joining the 5 trillion dollar club. Years ago, when India
made a tryst with destiny at the stroke of the midnight hour, it was ranked among
the poorest in the world in terms of per capita income. Since then, India’s
economy has grown by about 55 times to be the fifth largest, with 7.3% share of
world GDP. To take such a huge turn of events despite undergoing a variety of
struggles is indeed a commendable task.
In 2019, Prime Minister Narendra Modi envisioned to make India a 5 trillion dollar
economy and global powerhouse around 2024. which was later revised to the
year 2025 due to the poor conditioning of the world economy during the year
2020. This too was refuted by the IMF, the international monetary fund,
estimating the goal year to be 2027.
they say, history repeats itself. (pause)
once before we have witnessed India doubling its economy, in merely 5 years,
fy04-08, emerging as a 1 trillion dollar economy, proving that said goal is not
actually impossible.
V Anantha Nageswaran, renowned Economist and chief economic advisor to PM

Narendra Modi predicts India to be able to achieve the 5 trillion dollar economy
by FY 2025 with a sustained growth of 8-9%
Not only that but India wears the badge of being the fastest growing economy of
2021 proudly. without a doubt we can understand that our economy proves
capable of hitting the 5 trillion dollar mark.
As we delve deeper we observe that the service sector in particular contribute a

lion share to the growth of the economy in the technical sector like information
technology, BPO ect.
these emerging sectors greatly assists in India spreading its branches across the
world.
Yet another aspect of our country that contribute to the growth of our economy
is the large youth population. Human capital of India is young, This population
once skilled and trained can greatly maximize the growth.
Thus India holds what most other countries envy, inviting foreign investments and
outsourcing opportunities for this key reason.
With the huge population we find the growth rate of the economy speed as there
is shown a rapid increase in domestic consumption in the country. Increase in
consumption will in turn increase demand, attracting more investors. This
increased demand calls for greater production and hence observed ----growth.
And so the need for production is aaaall generated in the country itself. Making
even exports just an additional bonus.
Along with this idea of consumption demand growth which the US used to follow,
we additionally adapt China's infrastructural growth to supplement.
Becoming the best of both worlds.
Another contributing factor is the urban growth.
Urbanization is a key ingredient of the growth of any economy. There has been a
rapid growth of urban areas in India after independence. Improved connectivity in
transport and communication, education and health have speeded up the pace of
urbanization.
In line with PM modi's aim to achieve the 5 trillion dollar economy our finance
minister, Mrs.Nirmala Sitharaman raised capital expenditure by 35.4 per cent. for
the financial year 2022-23 to Rs 7.5 lakh crore rupees to continue the public
investment-led recovery of the pandemic-battered economy. The capex last year
was Rs 5.5 lakh crore rupees.
And what this complex sentence means is she aims to improve the economy's
infrastructure to let the economic ventures thrive. But is a mere 2.5 crore rupee
jump sufficient to achieve the goal of 5 trillion $ economy??? Not at all!
we need massive investments of around 300 billion dollars a year in key

infrastructure sectors such as roads railways airways waterways, ports, gas and
transport. not just to spur economic growth but to also create enormous scope
for employment thus, providing income to people and bolstering consumption on
a sustained basis .
All that about the Government's measure to improve the situation. As we know it
is team work that wins. Private capital expenditures should flourish alongside to
achieve a balanced growth. private capital expenditure remains elusive thus far.
the govt. needs to channelize this aspect by creating durable infrastructure assets
such that capex has a multiplier effect than mere revenue spending . the central
govt. has also raised substantially the budgetary capital expenditure for financial
year 23 to rupee 7.5 trillion i.e. close to 100 billion dollars, up by 27% from the
previous year.
it is noteworthy to mention that the finance minister has stressed that there will
be no cut in the capex outlay in fi 23
despite challenging times, these measures will ensure that we are always one
step closer to achieving our goal.
which is aspiring to be a five trillion dollar economy by 2025
once again, this is Sarvagnya.J.S of class 11d, sharing my insights on our journey
towards a 5 trillion economy.

Journey To A 5 Trillion Dollar Economy

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Good Morning, I am Sarvagnya.j.

s here to speak about the Positive Prosepects of

Cautious optimism is in order as India marks 75 years of independence and the

they say, history repeats itself. (pause)

V Anantha Nageswaran, renowned Economist and chief economic advisor to PM

As we delve deeper we observe that the service sector in particular contribute a

Becoming the best of both worlds.

Another contributing factor is the urban growth.

we need massive investments of around 300 billion dollars a year in key

which is aspiring to be a five trillion dollar economy by 2025

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