With Prime Minister Narendra Modi declaring that India is expected to be the world’s third largest economy in the next five years on the 77th Independence Day from the ramparts of the Red Fort on Tuesday morning, Sanjeev Sanyal, member of Economic Advisory Council to the Prime Minister (EAC-PM), spoke exclusively to News18 in which he stressed that more economic reforms will follow on the supply side in the coming years.
Decoding PM Modi’s 90-minute speech, Sanyal affirmed that India, by all current indications, will become the third largest global economy by 2027-2028.
Significantly, this is the second time in the past seven days when Modi has exuded confidence about the return of his government to power next year. He “promised” to make India world’s third largest global economy in the next term while addressing the nation today. He mentioned the same during his address in Parliament last week. India now holds the position of fifth largest economy of the world, maintaining its lead over the UK, said an RBI bulletin early this year.
“In terms of GDP size, we were a $3.8 trillion economy in last financial year ending March 2023. In the next two years, we will go past Germany, which is now a $4.3 trillion economy. Japan is a $4.9 trillion economy. Both of them are no longer growing. I think, in 2027-28, we should be a $5-trillion economy and will be, consequently, the third largest economy in the world,” said Sanyal while elaborating on PM Modi’s speech about India’s economic growth.
Sanyal further said, “Incidentally, if we calculate it by purchasing power parity, we already are the world’s third largest economy. But, here I am calculating it in nominal US dollar value. By all indications, unless there is a major natural calamity or other large shock, we are en route to becoming the world’s third largest economy by 2027-28,” added Sanyal, who was also the Principal Economic Adviser to the Finance Minister for five years till February 2022.
Talking about the economic and financial reforms, which are to follow, Sanyal said for more economic growth, continuous reforms are required. “So, we intend to keep doing more economic reforms on the supply side.”
Economic growth, Inflation under control
Talking about India’s economic status, PM Modi said the country has worked hard on the indices of poverty alleviation.
“Over the past five years, the economic condition of around 12.5 crore poor have changed and they are now categorised as neo-middle class,” the PM said.
He also announced an interest waiver plan for the poor, who live in community housing, slums or rented premises in unauthorised buildings. “The government will work on a housing loan for people who reside on rent in Chawl (community housing) and unauthorised structures,” Modi added.
Commenting about price rise and inflation, the PM said, “The world is suffering from the worst kind of inflation now. Price rise is a global phenomenon as all countries are experiencing this. Despite all these, our country is successfully keeping inflation under control.”
Modi stressed about development and various infrastructure projects. “We have Vande Bharat trains running, and we are working on bullet trains. We have already rolled out 5G high speed telecom services. Now, we are planning a 6G rollout soon. The internet has become cheaper for all than before.”
PM lauds India’s effort to establish a digital economy, and said, “Digital economy is a successful adoption. We have been praised by global leaders. Last year, when I was in Bali (Indonesia) to attend the G20 Summit, so many world leaders asked me about our digital economy and services.”
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