With India aiming to become a $5 trillion economy by 2025, Niti Aayog vice-chairman Rajiv Kumar said that if this economy goal set by Prime Minister Narendra Modi is not achieved, then India’s demographic dividend will turn into a demographic nightmare.
Kumar made these remarks while he was addressing a gathering of economists, academicians, students at the eighth foundation lecture of Pune International Centre (PIC) at Yashada Auditorium on Wednesday.
“The Indian government has put out a bold vision of creating a $5 trillion economy by 2025. To nearly double the economy in six years will require significant industrial growth coupled with access to infrastructure funds, and smart trade policies. If this is not done, then India’s demographic dividend will turn into a demographic nightmare. The information revolution has led to aspirational explosion. The youth of the country will not wait for this feat to be achieved as they have high aspirations. We all of us have to achieve this despite the lacunae. There will be dire consequences if we don’t achieve this goal.”
Talking about the economic slowdown, Kumar said, “There is no point in denying that the country’s growth is on a downward spiral. Yes, we are in a difficult situation. We have to understand that we are an integral part of the economy and whatever happens to the economy, will affect us. We are also facing turbulent conditions in terms of technology. In economic terms, the rate of growth of global trade is lower than the rate of growth of Gross Domestic Product (GDP).”
{{/usCountry}}Talking about the economic slowdown, Kumar said, “There is no point in denying that the country’s growth is on a downward spiral. Yes, we are in a difficult situation. We have to understand that we are an integral part of the economy and whatever happens to the economy, will affect us. We are also facing turbulent conditions in terms of technology. In economic terms, the rate of growth of global trade is lower than the rate of growth of Gross Domestic Product (GDP).”
{{/usCountry}}Prashant Girbane, director, Pune International Centre was also present for the event.
Main structural impediments
Kumar elaborated on five points as the main structural impediments towards scaling the $5 trillion economy comprising, agriculture which according to him was the sector with most significant drag; poor credit growth, poor export competitiveness, power and energy inefficiencies and public sector enterprises which due to their operational and capital inefficiencies were negatively impacting the economy and private sector.