“The Ambitious Target of India Becoming a $ 5 Trillion Economy is Achievable” — Prof.K V Subramanian,Chief Economic Advisor, Government of India

(Judicial Quest News Service)

“Even though the target of India becoming a $5 trillion economylooks
ambitious, it is realistic and achievable considering multiple successes
in all domains of governance in the last five years”, said Prof. KV
Subramanian, Chief Economic Advisor, Government of India,while
addressingthe Assistant Collectors under Training of 2018 batch allotted to
Telangana, Military Engineer Services Probationers, Group-I Officers of
Telangana State, senior officers from Madhya Pradesh and other Trainees at Dr
MCR HRD Institute. The theme of his presentation was “The State of Indian
Economy”
Prof.Subramanian said that investments, which would be the key driver to reach
the target of $ 5 trillion economy in the next five years, would not only give a big
boost to Industry, Services, and Business, but would also create innumerable jobs
for all sections of society, including their poorer counterparts, and thereby making
the process of development and growth truly inclusive in nature.
Continuing his address, Prof. Subramanian pointed out that India took a long
period of 55 years to reach the first trillion economy mark and thereafter grew
consistently from $ 1.7 trillion to a whopping $ 2.7 trillion in the last five years,
that is, from 2014-19.
“Currently, India is the 6th largest economy and reaching the mark of $ 5 trillion
economy would make it the 3rd largest economy, only after the US and China.
“For this to happen, the real term growth of 8% per annum is the need of the
hour. And the Economic Survey, 2018-19 lays down a strategic blueprint to
achieve this cherished goal”, stated Prof. Subramanian.
Prof Subramanian said that many enterprises preferred to stay small to benefit
from incentives, and as a result, their growth was lower compared to their real
potential. He, therefore, underlined the importance of providing incentives
tothose enterprises which have the real potential to grow at a rapid pace.
Prof. Subramanian called upon the States, across the country, to bring in labour
reforms enhancing the threshold of employee number to increase their

productivity. Citing Rajasthan as a successfulexample of enhancing productivity,
Prof Subramanian said that it enhanced the limit of employees to 300 from 100 to
benefit from labour rules. “The productivity in this case increased from 3.65
percent to a staggering 9.33 percent, after labour reforms”, he added.
Prof Subramanian pointed out that larger firms have greater potential for
employment generation in the longer run and the Micro, Small & Medium
Enterprisesrun the risk of becoming less impactful in generating employment.
Highlighting the accomplishments in the last five years, Prof Subramanian said
that reduction in average inflation by abouta half, that is, the Consumer Price
Index from a soaring 12% to 6% and Gross Fiscal deficit from 4.5% during 2013-
14 to 3.4% during 2018-19 helped achieve macroeconomic stability.
Responding to Prof. Subramanian, Sri BP Acharya, IAS, Spl. Chief Secretary,
Govt of Telangana & DG, Dr MCR HRD Institute said that while
encouragement to large industries is important in its own right, Micro, Small &
Medium Enterprises (MSME) should not be ignored considering their substantial
role in generating employment, especially for women with humble background
and lower levels of education, and thereby reducing poverty. “There are multiple
success stories of MSMEs, with multiple beneficial outcomes for all stakeholders.
“The model of equi-focus on both large as well as small enterprises should be the
mantra of development in the years to come”, he added.
Prof Subramanian and Sri B P Acharya gave away prizes to the Military Engineer
Probationers in Book review, Movie Review, and Cheriyal Painting competitions.
Sri Sri K. Ramakrishna Rao, IAS, Principal Secretary, Finance Department,
Government of Telangana also graced the event.