The Indian economy will more than double to USD 5 trillion in a “matter of few years” as the government steps on its reforms agenda to accelerate growth, Finance Minister Arun Jaitley said on Thursday.
The reforms will not just help India retain the fastest growing large economy tag but also help it move towards becoming “a more developed economy,” he said.
“With India’s GDP poised to grow at a much faster pace, for every few years we are going to add USD 1 trillion to our economy. We are currently USD 2 trillion economy. It’s only a matter of few years that we will jump from USD 2 to 3 to 5 trillion which indicates the kind of expansion which the economy is going to take place,” he said.
Speaking at the India Investment Promotion Seminar organised by CII and DIPP, he said it is easier to grow when the world is growing at a faster pace. “But when the global environment is unsupportive and at times obstructive, where shrinkage of trade is taking place, that is the real test because they say when the going is good everybody is at best. When the going is challenging then to defy the odds, and counter the trends is a real challenge,” he said.
Stating that India has received the distinction of being the fastest growing economy in the last two years when global growth was slow, he said trends have shown that consumer spending and urban demand have moved up and slowly rural demand is also struggling up.
“This in turn will have a spiral effect in coming years on India’s private sector which also has been waiting for opportune moment to become a little more aggressive,” he said.
Earlier, delivering a lecture at the Osaka University in Japan, he said that for India to realise its full potential for the next few decades, it needs to pursue its programme for economic growth more vigorously.
Notwithstanding an unsupportive global environment, India clocked a GDP growth of 7.9 per cent in the January-March quarter and 7.6 per cent for the entire 2015-16 fiscal on account of the government’s pro-growth policies, he said.
“India will maintain this paramount position of fastest growing economy in the world. And if we did that we can present ourselves as a society which evolves from an emerging economy and moves towards a more developed economy. And we have a pipeline of reforms still left to be implemented over the next few years, and notwithstanding global slowdown and two years of bad monsoon, we have reached a situation where we still have the highest growth rate in the world,” he added.