Don’t miss the latest developments in business and finance.

Modi says Budget lays roadmap for India becoming USD 5 trn economy by 2024-25

Image
Press Trust of India Varanasi
Last Updated : Jul 06 2019 | 2:40 PM IST

Prime Minister Narendra Modi Saturday said his government's Budget for 2019-20 lays down a roadmap for nearly doubling the size of the Indian economy to USD 5 trillion in five years by raising per capita income, boosting consumption and increasing productivity.

Speaking at the launch of his party's membership drive here, he warned the countrymen to be wary of "professional pessimists" who out of habit will criticize rather than provide solutions for achieving a target.

"Size of the cake matters. The larger the cake, larger pieces are what people will get. So we have set a target of making India a USD 5 trillion economy. Larger the size of the economy will be, the larger the prosperity will it bring for the country," he said.

Citing international examples, he said countries have leapfrogged from developing to developed status on the back of a jump in per capita income.

"India can also do that. The target is not difficult," he said. "When per capita income rises, there is a corresponding increase in purchasing power which triggers a rise in demand. To cater to this rise in demand, productivity increases and there is an expansion in services. All this creates new opportunities for employment. Per capita income rise also leads to an increase in savings."
Modi said some people even question the need to become a USD 5 trillion economy. "They are what I call a professional pessimists. They are detached from the common man and if you go to them for a solution, they will put you in crisis."
While there should be debate and criticism on ways and means, questioning the target of building a USD 5 trillion economy is wrong, he said. "The country needs to be vigilant of these pessimists."
While the country is self-sufficient in food grain production, the Budget lays emphasis on turning farmers into exporters of farm produce and value-added products. For this, investment in food processing has been stepped up, he said, adding shipments of vegetables and fruits from this town have increased after setting up of facilities for perishable commodities
"India spends Rs 5-6 lakh crore every year on oil imports, on petrol and diesel," he said. "So if it is reduced, it will be a big relief to the country."

Also Read

First Published: Jul 06 2019 | 2:40 PM IST

Next Story