What 5 Trillion Dollar? India to be $10 trillion Economy, Says Rajnath Singh

Amid sluggish economic growth, Defence Minister Rajnath Singh on Monday said the government's aim is to take the Indian economy to US Dollar 10 trillion by 2030. Speaking at a conference in New Delhi, Singh said that with country’s immense talent, India will become a 10 trillion-dollar economy within 10 to 15 years.

“Prime Minister Modi has set 5 trillion-dollar economy target by 2024 but I feel that with the talent we have, in 10-15 years we will make it a 10 trillion-dollar economy,” news agency ANI quoted Singh as saying.

The Modi government has underlined its priorities in the first 50 days of its second term, setting sights on making India a USD 5 trillion economy and hitting the ground running on spurring growth.

Rajnath Singh’s comments came amid Moody's Investors Service changed its outlook on India’s ratings from stable to negative. Moody's also affirmed India's Baa2 local-currency senior unsecured rating and its P-2 other short-term local-currency rating. “Moody's decision to change the outlook to negative reflects increasing risks that economic growth will remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses than Moody's had previously estimated, leading to a gradual rise in the debt burden from already high levels,” the agency’s statement said. 

“India's economic growth has slowed materially, with real and nominal GDP growth falling to 5% and 8% year on year in April-June 2019, respectively. Moody's estimates that the growth slowdown is in part long-lasting. Moreover, compared with two years ago when Moody's upgraded India's rating to Baa2 from Baa3, the probability of sustained real GDP growth at or above 8% has significantly diminished,” Moody’s further said.