On September 3, 2023, Prime Minister Narendra Modi said that India’s economic growth is a natural by-product of nine years of his regime that ushered in political stability, and he expressed optimism that it will be a developed nation by the year 2047, with corruption, casteism, and communalism having vanished from the country and no place in the national life.
In an exclusive interview with a media agency, the prime minister also stressed the need for timely and clear communication of our policy stance by the central banks and policy actions by each country in their fight against inflation so that it can prevent negative repercussions on other countries.
India’s Economic Achievement
While most of the advanced economies are facing an economic slowdown coupled with high inflation, chronic shortages and the curse of an ageing population, the Indian Economy is acknowledged as the fastest-growing economy with the largest youth population.
Progress of India’s Economy
“For a long time in world history, India was one of the top economies of the world. Later, due to the impact of colonisation of various kinds, our global footprint was reduced,” he said. “But now, India is on the rise. The speed by which we jumped five steps, that is, from the position of 10th largest economy in the world, India is now the globe’s fifth largest economy in a decade, has conveyed the fact that India means business,”
Adding a fourth D, which is development to the three D’s of Democracy, Demography and Diversity, he said that the period till 2047 is of huge economic opportunities, and Indians living in this era will be very favourable and will witness a great chance to lay a foundation for growth that will be remembered for the next thousand years.
India’s USD 3.39 trillion GDP overtook that of the UK in the fiscal year ending on March 31, 2022, making it the fifth largest economy in the world, behind the US, China, Japan and Germany. In the three decades before 2014, Modi said that India saw many governments that were unstable and unable to make any significant changes to the Indian economy.
“But in the last few years, the people have given a decisive mandate, which has led to a stable government, predictable policies and clarity in the overall direction. This stability is the reason why, over the past nine years, several reforms were brought in. These reforms included the economy, education, financial sector, banks, digitalisation, welfare, inclusion and the social sector, have laid a strong foundation, and growth is a natural by-product, he said.
The rapid and sustained progress made by India has evoked interest across the world, and many countries have been watching our growth story very closely. “They are convinced that this progress is not an accident, but is happening as a result of its clear and action-oriented roadmap of Reform, Perform and Transform,” he said.
“For a long time, India was perceived as a nation of over one hundred and billion hungry stomachs, But now India is seen as a nation of over one hundred billion aspirational minds and more than two billion skilled hands and hundreds of millions of young people
He noted that India is home to more than a hundred unicorns, is the third largest space start-up hub, and its space sector achievements are being celebrated all over the world. India is also breaking previous records in almost every sports event, and more universities are entering the top rankings of the world year after year.
Goal of PM Modi
By 2047, I am sure that the country will be among the most developed countries in the world. Modi said that as a developed nation, the Indian economy will be more inclusive and innovative, poor people will win the battle against poverty comprehensively, and the health and educational facilities and social service outcomes will be among the best in the world. Corruption, casteism and communalism will have no place in the national life.
The quality of life of four people will be far greater than and at par with the best countries of the world. Most importantly, we will achieve all of this while caring for both nation and culture,” he said.
“Our G20 Presidency engaged the G20 Finance Ministers and Central Bank governors. It was required that the timely and clear policy for communication of policy stances by the Central Banks is crucial This can ensure that policies taken by the country to combat inflation do not lead to negative repercussions in other countries.
Role of the OECD
The Organisation of Economic Cooperation and Development has been targeting proposals to reduce incentives for tax planning and avoidance by limiting tax competition and changing where companies pay taxes.
Pillar one of the OECD expands a country’s authority but does not have a physical location there, which will allow countries and jurisdictions to move forward with the historic and major reform of the international tax system. Modi said, “You can see there is substantial progress across many issues. This is also a result of the confidence that other partner countries have shown in India’s Presidency.”
Reports from Multinational Companies
In a recent report, Morgan Stanley called the nine years of the Modi Government transformational and listed bringing corporate tax at par with peers, infrastructure investment picking pace, the rising collection of the GST and increasing share of digital transactions as a part of GDP as major initiatives.
Ernst and Young (EY) projects India’s GDP to surpass USD 5 trillion by 2028 to overtake Japan and Germany. But the US economy is projected to be six times as large as the Indian economy
