Reports and studies by the Prime Ministers Economic Advisory Council and the Niti Aayog Members suggest that the Indian economy has the potential of becoming a $7 trillion economy in the next two decades; specifically by the year 2030. The growth rate since 2011 though lower by almost two per cent since 2011, the Members and the Council argues that all this is because of the Government’s focus on long term structural changes in the Indian economy.
According to them, the national income of India should be around $6.5 to almost $ 7 trillion. According to the Members and the Council, if the exchange rate situation remains the same or rise even a little, even by the year 2030, India could see a $10 trillion rise in the economy.
Members of the PMEAC suggest that the nation needs to grow almost by 7 per cent on an annual basis to achieve the growth levels by 2030. This high growth will add the inadequacies of the poverty levels and unemployment figures.
The macroeconomic vulnerabilities of India have been reduced to some extent. However, there is still hue and cry over the current monetary and fiscal policies, according to the Members of the PMEAC. Focusing on the structural reforms in the long run could bear irreversible sacrifices to the short-run reforms. The lowered growth has also lead to the a per capita loss of $400.
According to Mr. Goyal of the PMEAC, the focus of the Government needs to shift to structural changes of the economy, and the infrastructural changes. Then only, we would be able to achieve the levels of growth estimated. Focussing on non-tradable assets would also help as most of the demand, this way would in the economy.