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Indian economy will likely become the third largest economy of the world within four years from now surpassing the Japanese and German economies, according to the latest report published by financial institute Jefferies. On assessing the world economy, the report observed that while many developed nations are witnessing slower growth rates, India has been able to maintain a healthy growth rate for an extended period of time now. As a result, from ninth position, the country has risen to fifth position within a decade. At present, only countries like the United States, China, Japan and Germany are ahead of India. Anticipating that the country will be able to maintain the steady growth rate, the report has expressed hope that India will become a $5 lakh crore economy by 2028 and in the process will overtake Japan and Germany, the economies dominating their respective continents. It should also be noted that along with becoming the third largest economy of the world, India will also be the second largest economy in Asia after China. These are no mean achievements considering the hurdles that India has had to face in its journey towards prosperity. It is envisaged that India will become $35 lakh crore dollar economy by 1947 as targeted by Prime Minister Narendra Modi.
To fulfill India’s dream of becoming an economic superpower, significant contribution from all three sectors of the economy is necessary. Moreover, along with infrastructure development by the government, private investment is required as budgetary resources are limited. Although the government has been working extensively to attract investment from capital-rich nations, Indian investors need to also come forward to partner in India’s quest for economic prosperity. Although the Reserve Bank of India (RBI) in a recent report has claimed that private investment is on the rise and such investment will further strengthen the economy, many economists believe that the private sector is not investing nearly enough in the country despite enjoying several financial benefits. The situation needs to be rectified at the earliest as neo liberal economic policy, which has been adopted by many developed countries in the world advises that the government should play the role of a catalyst, rather than an investor. It is important to note that by increasing expenditure on infrastructure projects, the government is playing the role of a facilitator in India’s growth story. Now, it is the turn of investors to reciprocate the same by investing generously in India instead of opting for foreign destinations.
Apart from preventing the flight of capital, another big challenge for India is to ensure healthy productivity in both the farming and industrial sectors as these sectors constitute major shares of the economy. The government should take necessary precaution to prevent any damage to crops due to natural calamities in the wake of global warming. At the same time industrial output should be emphasised upon as without contribution from the manufacturing sector, economic prosperity will remain a distant dream. Thus, India should ensure uniform growth in all sectors in its endeavour to script a new success story.