India can become Third-Largest Economy, say Jaitley

Expressing confidence about the economy’s potential, Finance Minister Arun Jaitley on Tuesday, 23 Jan hoped that it would become the third largest economy over the next 25 years.

“We have moved from the seventh to the fifth largest economy. Unquestionably in the next 25 years India would perhaps be the largest economy,” he said at the ASEAN-India Business and Investment Meet.

Noting that India has become one of the fastest growing economies of the world, he said that the economy has demonstrated the capacity to grow even in adverse conditions.

His comments come a day after the International Monetary Fund pegged India’s GDP growth at 7.4 per cent for 2018, making it the fastest growing economy in the world.

Referring to Prime Minister Narendra Modi’s speech at the World Economic Forum meet in Davos, where among three challenges, he listed more inward looking policies by countries; Jaitley noted that India stands as an exception.

“It has become more globally integrated,” he said.

The Minister also expressed hope of deeper trade and investment relations between India and ASEAN countries.

“India and the ASEAN nations represent an aspirational world. They house two billion of the world’s population and trade has the capacity to give the necessary impetus to the economy,” he said, adding that more trade can lead to higher growth, investment and greater job creation. Jaitley also highlighted sectors including infrastructure, manufacturing and services like education and healthcare that require more investments.