India could climb up to be 5th largest economy next year: Arun Jaitley
13 July 2018: India could soon develop as the world’s fifth largest economy if it continues to maintain its prevailing pace of growth, according to Finance Minister Arun Jaitley.“ If we resume growing at our current pace, we may end up at the 5th position from 6th by the time we get data next year,” Mr. Jaitley said in a video address at agri-lender Nabard’s foundation day. According to updated World Bank figures for 2017, India becomes the world's sixth-biggest economy, pushing France into seventh place, published on Wednesday. At the end of, last year gross domestic product (GDP) of India amounted to $2.597 trillion, against $2.582 trillion for France.
Though ease of doing business has improved India would do well only after it manages to eliminate poverty, attract more investments in agriculture, meet the aspirations of the middle class, Jaitley said. The challenge now is to manage 7 to 8% growth amid global imbalances arising out of rising crude prices and trade wars which has put the currency under pressure.
Jaitley suggested a uniform set of policies for the agriculture sector across the country so that farmers benefit the most and their income doubles.
Agriculture is an area of concern for both the Centre and the states with both ending up making policies for the sector, according to Jaitley. He added that the same approach that helped roll out GST can be selected in the case of farm policies as well.
He also said that studies have shown that states which focused on the agriculture sector to help boost farm assets have been re-elected and those who ignored this sector, have not come back to power. Earlier at the event, India’s junior finance minister advised Nabard to step its support to farm producers’ organization (FPO) to 5000 such organizations over the next two years to help government’s lead to double farm income by 2022.