Indian Economy 2025 –A Roadmap

India is one of the fastest growing economy.Today India is ranked the seventh largest economy, and third largest in terms of Purchasing Power Parity (PPP). The Indian economy’s GDP is pegged at $ 2.9 trillion.The various macroeconomic indicators over the medium term, remain encouraging and optimistic for India. The underlying strengths are indicative of the potential of India to achieve a USD 5 trillion economy by 2025. The current economic scenario provide us platform to target achieving 1 trillion dollar from agriculture and allied activities, 1 trillion dollar from manufacturing and 3 trillion dollar from services.

The Government of India through ongoing initiatives across various sectors focused on economic development and growth. The Government targeted to achieve more than 8.5 % growth rate for the next five year plan 2023-24.In agriculture, the Government is aiming to reorient policy focus from being production-centric to becoming income-centric. The emphasis on incomes provides a broader perspective towards achieving the needed expansion of the sector. The current Industrial Policy provides an insight into sector-agnostic agenda for the business enterprises of the future and envisions creating a globally competitive Indian industry.

India will have one lakh start-ups by 2025 contributing $500 billion of value and giving employment to 70 lakh people.Average size of the successful start-up (a small scale organization) will be $5 million (around 30 to 35 crore rupees). This shows positive sign for the economic development of Indian economy. With a strong industrial base, the start-up ecosystem will even take India to the $10 trillion economy club by 2030.

The share of Agriculture sector in the GDP of the country is less than 14%. However, more than 50% of the total population of the country is still dependent on agriculture. Keeping this in mind, the Union Budget 2019 - 20 gave high priority to the agricultural sector and aimed to double farmers’ incomes by2022.Government subsidies to agriculture are at an all - time high.
The point of concern is that Agricultural land is being brought under industrial and commercial use, thereby straining the remaining agricultural land.
Many export sectors have been opened for agricultural goods.
Food processing is emerging as a ‘Sunrise Industry’

The contribution of the manufacturing sector had increased phenomally. The manufacturing PMI Index is more than 51.8.  There is Autonomy in production, marketing and distribution,    Reduced red tapism, encouragement to private investments, both domestic as well as FDI,     Transfer of technology and benefits of research and development to the advantage of the economy,    Arrival of investment models such as joint ventures, public-private partnerships, MNCs and finally
Private players got an opportunity to enter new sectors, which were earlier under government monopoly.

Service sector contribution is about 56 percent in GDP. The service PMI Index is more than 54 which shows the there is expansion in this sector. Banking, Finance, Business Process Outsourcing - and Information Technology services - have seen double - digit growth. Further, new employment opportunities are being created in this sector.Opening of transportation, tourism and medical sectors have led to the growth of service sector competencies. Reserve Bank of India is now working as a facilitator rather than regulator. Over all India is considered as an IT hub.

Certainly, India will grow by leaps and bound. It is pertinent to note that if the country will focus on to increase the volume of export, then current account deficit will decrease which in turn will increase the real value of Indian rupee. This makes import cheaper.