(GIST OF YOJANA) India's Journey towards a $5 Trillion Economy [SEPTEMBER-2019]
(GIST OF YOJANA) India's Journey towards a $5 Trillion Economy
India's Journey towards a $5 Trillion Economy
- India’s rise is an opportunity to re-imagine an India in consonance with our highest civilisational ideals: joy, sustainable prosperity, responsible freedom, inclusive growth, peace and mutual respect. These ideals, when they influence our foreign policy, have the potential to shape a plural global order.
- As potential leaders and shapers of tomorrow, the current global environment calls on us to envision an inclusive global order and then strive to make it a reality. India needs a dream, an overarching vision to bring coherence lo our actions, lo act as it balancing power and conned with individuals, nations and regions for achieving sustainable prosperity and progress.
India’s Foreign Policy Approach
- If one looks very closely within this churn, India’s foreign policy approach has been undergoing a paradigm shift with economic and strategic relations gaining significant cultural undercurrents. The new approach is reflected in the foreign policy pillars of Panchamrit – Samman (dignity and honour), Samvaad (engagement and dialogue), Samriddhi (Shared Prosperity), Suraksha (regional and global security) and Sanskriti evam Sabhyata (culture and civilisational linkages). Panchamrit has begun to influence our international outreach.
- This has found place in our global engagements through the ‘Neighbourhood First’ and ‘Act Fast’ approach, as evidenced by Prime Minister inviting the heads of all SAARC countries to his swearing in ceremony in 2014 and his counterparts in the ASEAN for India’s Republic Day in January 2018.
Achieving a S5 Trillion Economy
- In the Governing Council Meeting of the NITI Aayog Prime Minister announced the target of a $5 trillion economy for India by 2024.
- It is essential to think big when seeking to make a difference, for transformation does not come from modest plans.
What would we like to see in the proposed $5 trillion economy?
- It will require design, funding and governance. The Economic Survey has pegged the 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 Economic Survey has laid a road map where it says India must grow at 8 per cent.
Focus on MSME Sector
- The significance of 65 million MSMEs who create about 120 million jobs and 30 percent of the country’s economic output and around 30 per cent of total employment generation cannot be underestimated.
- Keeping this in mind, the Government has undertaken several transformational reforms in MSME sector recently.
Focus on Agriculture Sector
- Sixty per cent of India’s population lives in rural areas and is mostly engaged in agriculture. The Government has committed to double Farmers' income by 2022.
- The real issue is not the level of productivity' but how produce can be converted into value that will decide farmers’ income.
- Today, no industrialised nation can survive without agriculture. Globally, 60 to 80 per cent movement of goods is around agriculture or its produce.
Focus on Service Sector
- Services contribute to 56.5 per cent of GDP but create only 30 percent of jobs. So far, IT sector has been the mainstay, exporting over 80 per cent of its SI 50 billion turnover.
- But it is also to be seen that more than 50 per cent of IT revenues come from the US, therefore the future looks challenging at the backdrop of current US policies. PM has set the following Vision for New India:
- To be free from poverty, full of prosperity;
- To be free from discrimination, filled with equality;
- To be free from injustices, ensconced injustice;
- To be free from squalor, covered with cleanliness;
- To be free from corruption, complete with transparency;
- To be free from unemployment, enriched with employment;
- To be free from atrocities against women, full with respect for women; and
- To be free from despondency, full of hope.
- It is absolutely essential to work on a framework that provides case of business and predictability.
- It is also time to redirect energies on providing the environment to encourage private sector investments and innovation.
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