India's grand $5 trillion goal, and the policies to achieve it
Prime Minister Narendra Modi has given India and its citizens a lofty goal of maturing into a $5 trillion economy by 2025. Every growing country needs an ambitious goal, so everyone is aligned and focused on reaching it. To reap this vision, we must first take stock. In FY 2018-19, India's GDP is estimated to be Rs 190 lakh crores or $2.7 trillion (at Rs 70 = $1). Say we grow at eight percent for the next six years, with inflation at 3.5 percent, yielding a nominal growth rate of 11.5 percent - in constant currency of Rs 70 = $1, starting at $2.7 trillion - the $5 trillion goal is well within reach. Putting aside considerations like the rupee depreciation, the critical issue is, can we reach this goal of eight percent growth over the next six years?