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17-Jan2019

Working group recommends measures to attain $5 trillion economy by 2025

In order to increase the size of India's economy to $5 trillion by 2025, a working group of the Commerce and Industry Ministry has come out with a blueprint suggesting a bunch of lengthy and short-term measures. The group underlined that agriculture and manufacturing sectors can contribute $1 trillion each, while the contribution from the services sector has been pegged at $3 trillion. It said that India's potential to achieve a $5 trillion GDP by 2024-25 is within the realm of possibility. 

The group identified specific policy recommendations for the three sectors such as agriculture, manufacturing and services sectors. For the agri sector, the report recommended encouraging public and private investments to develop infrastructure like cold chains; special attention for north-eastern, eastern and rain-fed states for augmenting scope of access to institutional credit; and rationalisation and targeting of input subsidies towards small and marginal farmers. 

It has also suggested reform in land leasing laws to promote land consolidation and contract farming; and accelerating the pace of public investment in agriculture and ensure greater efficiency in capital use.  For manufacturing, it suggested a three-pillar strategy to achieve required expansion of output -- focus on existing high impact and emerging sectors as well as MSMEs. 

It further suggested that a focus on champion services sectors like IT, tourism, medical value travel and legal would be required to achieve the expansion of the services sector output and concerted efforts need to be made to increase exports.  The recommendations for services sector include improving rail connectivity and seamless connectivity to major attractions; facilitating visa regime for medical travel; allowing expatriate professional to perform surgeries in identified hospitals; and e-commerce policy and regulatory framework for logistics segment.

A working group of the Commerce and Industry Ministry was constituted by the Department of Industrial Policy and Promotion (DIPP) in the ministry with participation from the government and industry. It was tasked to develop a roadmap towards achieving a $5 trillion economy by 2025.


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