Roadmap to making India a $5 trillion economy

Source: The post is based on the article “Roadmap to making India a $5 trillion economy”  published in PIB on 1st August 2023.

What is the News?

Government has informed the Lok Sabha about the steps taken to make India a $5 trillion economy.

What is the roadmap of the government to make India a $5 trillion economy?

Government’s roadmap to achieve a $5 trillion economy involves focusing on macro-level growth while ensuring comprehensive welfare at the micro level. 

The roadmap also includes promoting digital economy and fintech, technology-enabled development, energy transition, climate action, and relying on a virtuous cycle of investment and growth.

What are the major steps taken by the government to make India a $5 trillion economy?

Reforms undertaken: The major reforms include Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), a significant reduction in the corporate tax rate, Make in India and Start-up India strategies and Production Linked Incentive Schemes.

Increase in Capital Investment: Government has focused on a capex-led growth strategy to support economic growth and attract investment from the private sector by increasing its capital investment outlay substantially during the last three years. 

– The Central Government’s capital expenditure has increased from 2.15% of GDP in 2020-21 to 2.7% of GDP in 2022-23.

Union Budget 2023-24: It has taken steps to sustain the high growth of India’s economy. These include a substantial increase in capital investment outlay for the third year in a row by 33% to ₹10 lakh crore (3.3% of GDP). Direct capital investment by the Centre is also complemented by Grants-in-Aid to States for the creation of capital assets.