Can We Get To 5 Trillion In 5 Years?
Skepticism abounds over whether the nearly $3 trillion Indian economy is growing fast enough to reach Prime Minister Narendra Modi’s GDP target of $5 trillion by 2024–2025.
But signs suggest that economic activity may have bottomed out, and foreign institutional investors are placing big bets on India’s infrastructure sector to spearhead the growth.
Foreign investors are attracted cash-flow generating assets like existing airports to operate and use as a cushion to invest in greenfield projects.
Transparency in governance, licensing auctions for public resourcesn and the existence of a top tier of well-managed private companies and other market mechanisms such as robust funding platforms are essential to drive the initiative.
In order to reach its GDP goal of $5 trillion, India’s economy will need to grow at a sustained rate of 9% over the next five years.
Are we on course?