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Narendra Modi government soon after assuming office for the second term had set a target of taking the economy to $5 trillion over the next five years.
While speaking at ETMarkets Global Summit in Mumbai on Friday, Nilesh Shah, Managing Director of Kotak Mahindra Asset Management said that India had the third-largest reserves of coal, but yet it imported the fuel.
He also pointed out the irony of Indians spending far more money to travel overseas for holidays instead of opting for Indian destinations.
“The day Indians realise ‘Be Indian, Buy Indian’, most problems will be solved,” said Shah.
Vaibhav Sanghavi, Co-CEO of Avendus Capital said the Indian economy was in a transit period as far as conducting business was concerned.
“You need to give money to public for formalisation of the economy. You cannot just work on the supply side, you also need to work on the demand side,” he asserted.
Radhika Rao, Senior Vice President and Economist at DBS Bank pointed out that much of the consumption argument was focused in tier-I and tier –II cities, and that needed to change.
Expressing his concerns, Salil Pitale, JMD & Co-CEO of Axis Capital said: “There was an imbalance of labour and GDP contribution. Agriculture, which employs most, has low contribution to the GDP.”
“We need services and industry to go deeper into Bharat. We need to bring better quality of life to villages,” argued Pitale.
Panelists at the event were in agreement that deadlines can be a big motivator
Nilesh Shah, citing an example said that CommonWealth Games in New Delhi -- which was held in 2010 -- led to a massive infrastructure development in the capital city. “If there is a time-bound delivery, we as a nation will figure out a way,” said Shah.
“If $5 trillion is Mr Modi’s target, it is difficult. But, if it is yours and mine, then will get there by 2025,” the industry expert said.
Emphasising that there was a need to understand that there is a huge amount of skill development to elevate everyone, Vaibhav Sanghavi said that this can bridge the gap between rural and urban India.
Sanjay Sachdev, Chairman of Zyfin Holdings believed that it would not be any one industry, but a host of them along with innovation and technology that would be key to drive India on its growth path.
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10 Comments on this Story
Vikram Aditya430 days ago
yes of course its true if the state ment "GO LOCAL" it''s absolutely true until and unless we the urbanite of India recognize the BHARAT side of India and there quality of life there dreams of tier 3&4cities in India is realized then the Modiji concept of 5tr is far more reality it''s the quality education system , service industry, telecom''s, small offices of, BPO, Amazon, fllipkart will definitely improve the lifestyle and public spending and by far more important thing in rural India is AGRICULTURAL it''s has to be modernised at a global standards for production to import in AT LEAST RECP South Asian region in this way the reality of 5tr is very much achieved and more over definitely to learn from Chinað ¨ð ³ how did it''s has transformed it''s rural communities into a production houses.
Nachiket Katha430 days ago
We can understand their compulsions. But till the time Modi is PM Indian cannot become 5 trillion dollar economy. Even if he remains PM for next 10 years given level of illiteracy in India playing on envy of rich by poor, though rich will become richer much faster than otherwise. But we will land in middle income trap. 5 trillion dollar economy would require expert economic management and not just empty talk. Today''s economic atmosphere is like those of 1970s when also we faced stagnation. China which was in similar position started its reforms steadfastly and that''s why succeeded. We instead have gone into pseudo socialism, have third rate judiciary (required to enforce contractual obligations), has telecom network required for digital India fit for Sub-Saharan economy with telecom speeds in Pakistan (13 mbps) and Sri Lanka (22) mbps ahead of us(11 mbps).Judiciary with greedy DOT is bent on killing judgement, tax authorities killing on startup environment and FM fit to be at the most union leader given her tone and competence.
Hemant Pisat430 days ago
The suggestions are good and common senses. The platform was available and still available, but there is no understanding and will. Government and governance is mired in inadequate resources, so their time is spent on articulating finest ideas & brains are involved in to take than give to the nation and people.
There is certain amount of shoddyness and incompleteness in whatever India plans ( political establishment) for Indians. Create inadequacy to keep doors open for future ploughing, absolutely nothing is for next 100 years, how on earth India would become $ 5 trillion economy, when you are creating your own challenges day in day out? Hence I feel all political establishments and government formations struggle to secure power for their own betterment, there is no actual deep feeling to service the people. And administrative babus have become so confident that they are least bothered whoever comes to power, they will have their cake.