Wednesday, May 18, 2016

India to be the third largest economy in the world

India may be third largest economy after 2030: UK think tank Centre for Economics Business and Research (CEBR)

Dec 27, 2015

India May Be 3rd Largest Economy After 2030: Study

India's projected GDP in 2030 was $10,133 billion

Top 10 world economies in 2030 

India to be world’s third largest economy by 2030: US study Jun 25, 2015

In the macroeconomic projections for 2030 by the US Department of Agriculture,  in the next 15 years, India is believed to rise up the rankings and for the first time, enter the top three to become the third largest economy in the world.

India displaces Japan to become third-largest world economy in terms of PPP: World Bank
Apr 30, 2014

India to be the third largest economy in the world by Year 2043

17 February 2014 (PIB Note)

While   presenting    the  Interim   Budget    2014-15,   the   Union   Finance  Minister Shri P Chidambaram said that in the next three decades India will become the third largest economy behind USA and China.

The Finance Minister Mr. P. Chidambaram announced ten policies or tasks that his Government intends to pursue to achieve the goal of becoming the world's largest economy.

i.                    Fiscal Consolidation: A target of fiscal deficit of 3 percent of GDP must be achieved by 2016-17  and must always be kept below that level.

ii.                  Current Account Deficit: Since the economy will run a Current Account Deficit every year for some more years, it can be financed only by foreign investment, whether it is FDI or FII or ECB or any other kind of foreign inflow. Therefore, foreign investment must be encouraged.

iii.                Price Stability and Growth:  In a developing economy where the aim is high growth, a moderate level of inflation will have to be accepted.  RBI must strike a balance between price stability and growth while formulating monetary policy.

iv.        Financial Sector Reforms:  The recommendations of the Financial Sector Legislative Reforms Commission must be implemented immediately as they do not require any change in legislation.  Also, a timetable must be drawn for other recommendations that require  legislation.

v.         Infrastructure:  The country must rebuild its infrastructure and add a huge quantity of new infrastructure.  Every proven model must be adopted but the  PPP model must be more widely used.  New financing structures must be created for long term funds and pooling of investments.

vi.          Manufacturing:  The Government  must focus on manufacturing and especially on manufacturing for export.  The Minister  proposed  that all taxes, Central and State, that go into an exported product should be waived or rebated.  He also proposed that there should be a minimum tariff protection so that there is an incentive to manufacture goods in India rather than import them into India.

vii.     Subsidies:  Given the limited resources, and the many claims on the resources, the Government must choose the subsidies that are absolutely necessary and give them only to the absolutely deserving.

viii.  Urbanisation:  The country’s cities will become ungovernable, and perhaps unliveable, if attention is not paid  to  the decay in these cities.  Cities have wealth and also create wealth.  But that wealth should be tapped for resources to rebuild the cities with a new model of governance.

ix.    Skill Development:  Skill development must rank alongside secondary education, university education, total sanitation and universal health care in the priorities of the Government.

x.         Sharing responsibility between States and Centre:  States have the fiscal space to bear a reasonable proportion of the financial costs of implementing flagship programmes and must willingly do so, so that the Central Government can allocate more resources for subjects such as defence, railways national highways and telecommunications that are its exclusive responsibility.

India 2039: An Affluent Society in One Generation

Harinder S Kohli, Anil Sood
SAGE Publications India, 20-Jan-2010 - 300 pages

Updated  18 May 2016,  15 Dec 2014

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