Business News
4 min read | Updated on January 31, 2024, 11:32 IST
SUMMARY
Budget represents an opportunity to translate the $5 trillion dream into tangible reality, laying the foundation for an equitable and prosperous nation.
India is the sixth-largest economy in the world with a GDP nearing $3.5 trillion.
India stands at a critical juncture. As the world's sixth-largest economy with a GDP nearing $3.5 trillion, its growth trajectory has been remarkable. Projected to reach $4.5 trillion by 2025, the nation's future appears bright. Yet, beneath the impressive headline figures lie potential headwinds.
Global uncertainties, from rising inflation and geopolitical tensions to tightening monetary policies, threaten to impede India's momentum. Domestic concerns like unemployment, income inequality, and rural distress further necessitate a nuanced approach to economic progress.
It is against this backdrop that the ambitious aspiration of becoming a $5 trillion economy by 2025, articulated by Prime Minister Narendra Modi, takes center stage. This bold dream transcends mere numerical achievement; it signifies India's potential to join the league of global economic powerhouses, securing its place on the world stage.
The upcoming budget must therefore be viewed as a pivotal moment, a transformative juncture where India charts its course towards economic growth. It needs to be a budget that not only addresses immediate challenges but also lays the foundation for a sustainable and inclusive long-term growth model. This model must go beyond the $5 trillion milestone, ensuring that the benefits of economic progress reach every corner of the nation and fuel a future of shared prosperity.
India's infrastructure deficit, estimated at $1.7 trillion (WB, 2023), hampers trade, investment, and productivity. Budget 2024 will have to consider increasing the allocation of resources towards -
MSMEs contribute over 30% to India's GDP and employ over 110 million people. To achieve the mammoth $5 trillion objective, the budget will have to -
India's R&D spending stands at only 0.7% of GDP (EAC, 2023 data), significantly lower than global averages. Budget 2024 and those that will follow will have to pay careful consideration towards -
Budget 2024 is not merely a fiscal document; it is a roadmap to India's future. It represents an opportunity to translate the $5 trillion dream into tangible reality, laying the foundation for an equitable and prosperous nation. Navigating the complex economic landscape while addressing immediate challenges and envisioning a sustainable future – these are the challenges and opportunities that lie before India's policymakers. Budget 2024, and those to follow, can truly become the catalyst that propels India towards its rightful place as a global economic powerhouse.
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