Page 36 - Abhivruddhi

India’s GDP from 2018 to 2022 is shown in the table below.
India’s GDP
Year Lakh Crore Trillion USD GDP Growth
Rate %
Rupees
~ 2.70
2018-19
Third RE ~ 189 @ 70 INR/ -
USD
~ 2.74
2019-20
Second RE ~ 200 @ 73 INR/ ~ 5.8
USD
~ 2.71
2020-21 First
RE ~ 198 @ 73 INR/ ~ -2.0
USD
~ 3.18
2021-22
Second AE ~ 236 @ 74 INR/ ~ 19
USD

To realise the Five Trillion Dollar target, Indian Government has come
up with several policy proposals/missions like Start Up India, Stand Up
India, Make In India, आत्मननभ्भर भारत, NIP and गती-शक्ती. These initiatives
are undoubtedly major steps in the direction of the set goal. To quote one
example, India is emerging as an exporter in the so far import dominated
Defence sector.

A look at main factors related to GDP tells us that
1. Central Government’s budgets over past few years indicate that the
Tax to GDP ratio remains around just 10 % and total Government
Spending, a contributor to the GDP is effectively hovering around 15
% of GDP. Thus, (increased) Government Spending to boost GDP
does not quite seem to be a dependable and effective way.
2. Net Exports have been - either negative most of the times or when
positive, insignificant as a GDP contributor.
3. As regards the Exchange Rate (INR/USD), though slowly, INR has
been weakening consistently against USD for the past several years.
Thus, INR strengthening and thus leading to an increased GDP in
terms of USD seems an unlikely possibility in the near future.
4. Thus, it is GVA (Gross Value Added, the largest contributor to GDP)
where efforts should be concentrated to realise significant and quick
GDP rise.
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