Page 35 - Abhivruddhi

It was January 2018 when PM Narendra Modi, while addressing the
plenary session of the 48th World Economic Forum in Davos, Switzerland
spoke first about India aiming for a FTDE by 2025. Later it was reiterated in
the address from the Red Fort on Independence Day which endorsed that
the Government was very keen to set and pursue this apparently ambitious
goal. Indeed, it is the onus of the political leadership to spell out the vision
for the development of a country. Beyond a political announcement, such
grand vision sets the much-needed direction for the development and
necessary efforts.

Meaning and Relevance of FTDE for India
According to Worldometer1, in 2017, with its per capita income of less
than 2,000 USD, India’s rank was 122 among 190 countries. Second most
populous country on earth, home to about one sixth of world population (~
135 crore people), per capita income deserved a manifold rise.
Goal of FTDE broadly sets a direction for the Indian economy. In terms
of numbers, this means almost doubling the then (2018) GDP of about
2.7 Trillion USD in a span of just seven years. This would mean a higher
standard of living by way of doubling the per capita income. The relevance
and necessity are thus pretty obvious. On the world stage, India can then
rightfully occupy third spot in the GDP rankings.
While this goal was discussed and talked about since 2018, came the
COVID-19 pandemic severely impacting the economies across the world,
India being no exception. In 2020-21, India’s Fiscal Deficit peaked to reach
9.2 % of GDP. The nationwide lockdowns in the first wave in 2020 and
regional lockdowns in the second wave in 2021 took a toll on the economy.
As per Ministry of Statistics and Programme Implementation, GoI2,

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