India will be a super economic power by 2025

 Many people who are well versed with the fundamental principles of economics and  taking India’s strong foreign currency reserves into account  profess that India is heading towards a 5 trillion dollar economy by 2025.  This prediction, when materializes, our country will be the third largest after China and USA at that point of time.  That means, within another a decade, India will be an economically super powerful country in the world map. This achievement will be a very big accomplishment and will overtake Britain and become the largest economy in the Common Wealth. Almost after 60 years of independence, India  becomes the trillion dollar economy. As the economy is up swinging after crippling a bit on a rocky path of integration of globalization and industrial growth, India will touch the feat of $5 trillion economy within another ten years. This hopeful proposition has given an impetus and favorable reason for an overall upward movement of  the share market sensex from a point of 21140 to 27499 at the end of the calendar year of 2013.  In terms of percentage, there was a rise of 30% and this is a significant growth.  The various changes in policies and structural issues help this growth. Since then,the sensex rises or falls and the pattern of a somewhat bull market in the second half of the year 2014, is basically because of the political stability, good policies, focus to augment the reforms, and strengthening the thought process of globalization, which were envisioned during the early part of the last year, particularly after the new government-led by Modi who saddles on the ensconced seat of the Prime Minister in the month of May.

 

The Indian political scenario is now on the brink of solidarity as the power at centre and many states are mostly dominated by the BJP party.  They have an absolute majority in number game in Lok Sabha and so a tremendous fillip in growth oriented action plan is expected from them.  It is imperative to ensure the tonnes of growth in the years ahead from 6% to 10%  and more per annum  and this pattern is to be continuously maintained at least for a decade to come. And then, this growth will give rise the per capita income alleviating the poverty level.  So, the need of the hour is that India must start snowballing the effect of this evolution of economic growth, so that the aforecited economic goal is achieved. 

 

Now, what India has to do in this current calendar year and subsequently to establish   our country’s sovereignty and become an economic superpower in 2025?

 

In the reigning of the country, under the Prime Ministership of late P.V. Narashima Rao and ably supported by the then finance minister Man Mohan Singh, India introduced a lot of reforms, but despite all these reformative measures, India is still seen as a least globalization economies in the world and so the country needs rapid expansion and policy changes to augment the economic growth.  India’s current rating is 126 out of 140 countries ranked with respect to the Global Connectedness Index.  The main reason of India’s less significant presence is due to only 17% of our GDP accounted for a merchandize exports and 8% of our service exports.  It is a known fact that the weakness of our domestic market to synchronize with the globalization pattern of quality output and so the same is  to be scaled up to find out the opportunities of our domestic market. The process of searching for opportunities needs to be  radically  changed in  a scientific manner and for that policies and reforms are needed to be pushed  at a very high speed and within a defined period of time by the present government at the centre.

 

The infrastructure project, which needs to be streamlined and a huge amount of investment is required to be spent to accrue the benefits of employment, increase in per capita income and the growth of this particular sector itself.  The investment in this sector is stagnating at 6% of GDP and a lot of announced projects in this sector are not sped up for the want of clarity and focus how to implement these projects transcending all the procedural barriers. This syndrome ultimately leads to less demand of capital goods and machineries.  Further, the bids to construct ultra mega watt power projects are not forthcoming that spontaneously and hence not able to yield any fruitful results.  The delay in the decision to award these types of mega projects, lack of correct interpretation of rules and regulations, getting entangled in the price cutting theory by the respective bidders to win the above projects, less inflow of substantial capital to be employed to undertake these projects and the probability of the cost overrun do not provide any extra enthusiasm for any prospective bidders both in private and government sectors to come forward to give a boost to this infrastructure and mega projects. To overcome the bureaucratic stronghold at least in the decision making process and  to get more resourceful bidders, the authorities must  expedite the tendering process so that  the awarding of these types of projects becomes less cumbersome. To augment this process, Government of India must follow the plan of E-procurement, which Karnataka government is adopting.  The statistics show that this  state government is doing an annual turnover of 18 billion US dollars.  In this way, the concerned authorities, who are responsible for the award of these mega power and infrastructure projects can expedite the decisions, reduce corruption, award the projects and then monitor the completion of the same as per the contractual period.

 

Apart from infrastructure, railway, port, tourist and IT sectors are the other contributing sectors to make India a $ 5trillion economy. India’s 86 billion IT sector, which has grown 12 times in equal periods of years, still remains on the lower stratum and capture only a meager 10% of the world’s total IT spending. Similarly, railway lines, modification of its tracks, improving its signaling system, introducing high speed trains will complement the growth of the infrastructure and will make bonding of rail and road  facilities to increase the industrial growth.

 

The sector of tourism is  an another significant area and the development of many beautiful and scenic places of India is needed to be carried out to attract the influx of the tourists to earn sizeable revenue.

 

India has definitely the strength of intellectual manpower, skills, knowledge and resourceful labor forces; the only thing it requires a strategic push from the policy making authorities so that the reforms are getting sped up.  Once this action plan is streamlined, projects are awarded in all the above sectors and areas and  then completed in time, why India can’t be a USD 5 trillion economy by 2025, one should not have any doubtful inkling?  Let us take an oath and contribute in whatever way it is possible to participate in this economic evolution  so that the country can dominate the world super powers in the year beginning 2025.