India’s Economic Future’ PM Modi’s Vision for Growth in Third Term

Ira Singh
Khabar Khabaron Ki,05 April’24

As India braces for the upcoming national elections, Prime Minister Narendra Modi’s ambitious economic vision has taken center stage,after PM underscored economic advancement as a cornerstone of his administration’s achievements and future ambitions, in a fervent campaign rally speech. Promising a transformative leap, he pledged to elevate India from its current position as the fifth-largest economy to the esteemed rank of the third-largest globally, should he secure a historic third consecutive term, as projected by polls.

Reportedly,PM has already asked officials to finalise plans by around May to expand the economy to $6.69 trillion in nominal terms by 2030, from around $3.51 trillion currently.

When he took office for a second term five years ago, PM Modi promised to take the economy to $5 trillion by the current fiscal year, but partly due to COVID-19 related disruptions, meeting that target is virtually impossible now.

For the next six years, PM Modi’s goal is to raise per capita income to $4,418 from around $2,500, stated report, without specifying the spending or reforms needed to achieve that.

Independent economist Saugata Bhattacharya quoted as saying doubling the economy by the end of the decade would be a “very difficult feat” requiring 6 per cent-6.5 per cent growth for the next seven years along with inflation of 4.5 per cent.

The economy is, however, expected to have grown by around 8 per cent in the last fiscal year ended March 31, the fastest among major countries, on the back of strong manufacturing and construction activity driven by government spending.

The opposition Congress says India’s economic growth in the past few years under PM Modi has done little to create jobs and alleviate rural distress, while the disparity between rich and poor has widened. The official document says PM Modi’s government wants exports of goods and services to jump to $1.58 trillion by 2030 from around $700 billion, which could double the share of Indian exports in global trade to more than 4 per cent.

PM Modi has said in rallies he needs to remain in power to implement measures to take India towards a developed economy by 2047, the 100th year of Independence, from mid-income levels now. He has not spelt out the measures.

Opinion polls however,show he will win big in the elections starting on April 19 and ending after seven phases on June 1, with vote counting on June 4.

He would be the first person since India’s post-independence Prime Minister Jawaharlal Nehru to win three consecutive terms.