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Indian economy to reach $1.72 from 1.31 trillion in 1 year. Soon to reach $2 trillion

Discussion in 'World Economy' started by prototype, Aug 1, 2010.

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  1. prototype

    prototype Major SENIOR MEMBER

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    The Indian economy would grow to $1.72 trillion in 2011-12, moving closer towards the $ 2 trillion mark, according to an assessment by the Prime Minister's Economic Advisory Council (PMEAC). The country's gross domestic product (GDP) at the market and current prices was measured at $1.31 trillion in 2009-10 and is estimated to be $1.52 trillion in the current fiscal, the PMEAC said in its latest economic outlook.

    Pegging the GDP growth at nine per cent, the economy would reach a level of $1.72 trillion in 2011-12, it said.

    If the nine per cent growth trend is maintained, India would become $2 trillion economy in 2013-14 fiscal.


    In the assessment, the PMEAC, headed by noted economist C Rangarajan, said that it is imperative for India "to preserve conditions that will enable it to return to the 9 per cent growth trajectory".

    After slowing down to 6.7 per cent in 2008-09 and 7.4 per cent in 2009-10, the Indian economy is projected to expand at 8.5 per cent this fiscal and by nine per cent in 2011-12.

    According to experts, services and manufacturing sectors will remain the key drivers pushing the coveted growth to $
    two trillion mark.


    "Services sectors particularly transportation and telecom sectors will lead the growth. Rising income levels and
    aspirations of people will further the industrial output," CRISIL's chief economist D K Joshi said.

    In the first two months of current fiscal, the industrial production recorded an annual growth of 14 per
    cent. "The lead indicators of service sector also suggest increased economic activity," Reserve Bank Governor D Subbarao said in the first quarter credit policy review.

    If the tax reforms are implemented as planned from next fiscal, the economy would get further push.

    "The gain from GST will propel the country from one-trillion dollar economy to two trillion-dollar economy in
    a short span of time," Finance Minister Pranab Mukherjee recently said.

    Before the global economic slowdown since 2008, the Indian economy grew by over nine per cent for three years in a
    row from 2005-06 to 2007-08 and expansion was maintained by industry and services sectors

    Indian economy moving fast towards $2 trillion mark - Hindustan Times
     
    Last edited: Aug 1, 2010
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  2. Naren1987

    Naren1987 Captain SENIOR MEMBER

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    If it grows at this rate, it is reasonable to expect a 2.8-3 T economy by 2020
     
  3. jagjitnatt

    jagjitnatt Major ELITE MEMBER

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    The above article is not technically correct.

    The GDP 2009 is stated at $1.31 trillion.

    Even at a 10% growth rate, after two years the GDP would be $1.6 trillion and not $1.72 trillion.

    India would reach $1.72 in 2012-13 and not in 2011-12.

    India would reach $2 trillion mark in 2015 according to my estimates, and if we grow at rates faster than 10%, then we might reach it in 2014.
     
  4. prototype

    prototype Major SENIOR MEMBER

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    well i am to expecting it by 2015,but like the article states if it is by 2013,welcome:india:
     
  5. Osiris

    Osiris Major SENIOR MEMBER

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    This will happen when the new GST (Goods and service tax)law is implemented...but government don't have 2/3 rd majority in Parliament such law
     
    Last edited: Aug 2, 2010
  6. prototype

    prototype Major SENIOR MEMBER

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    yes,they dont have that majority,but i watches a program in Blomberg in which they told that some opposition parties r ready to support congress on the issue,though BJP is all set to bombard it
     
  7. Osiris

    Osiris Major SENIOR MEMBER

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    Left front is opposing the veto power of finance minister (4th),BJP is opposing the bill...UPA ally DMK has expressed their concern,so the political decision will delay.
     
  8. dhrum

    dhrum REGISTERED

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    is we accpect 5 trillion in 2020 ??????????????????????
     
  9. gowthamraj

    gowthamraj Lieutenant FULL MEMBER

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    ^ one thing i like is tax reforms. Only 17 percent of the GDP is from income tax in India. If it grows then, there will huge huge push in double digit
     
  10. jagjitnatt

    jagjitnatt Major ELITE MEMBER

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    ^^ Tax structure of India is already optimal. The reasons why people don't pay taxes are:

    - they don't see development taking place
    - they find it a hassle
    - they love their money too much


    The first point is being addressed, but unfortunately only in metros. In normal cities barely any development taking place. Most of the taxes collected are being spent on capital cities or metros, which makes the people from small towns feel that their money is not being spent on them.

    The second point is the biggest issue. Paying tax is still not simple enough. Paperwork needs to be done away with. Everything should be simple. Even small shops need an accountant to calculate and pay tax, this is not acceptable. Paying tax for an individual too is too much hassle today. Tax should be deducted from salary itself to make it simple and then the company should file the tax with the govt.

    The third point can not be addressed. These kind of people exist and there is nothing in the world which can make them change their mind.

    The only thing that can be done is to tighten rules regarding purchase of every item above Rs 10,000. Tax return proof should be mandatory to buy anything above Rs 10,000.

    The best way to address all the above would be to issue a smart card to every citizen instead of a an ID card. The smart card would have all info regarding the person including driving license, voting card, ration card, PAN card etc.

    A digital copy of the same would reside in the servers of govt. As soon as a person reaches the age of 18, voting, ration, PAN etc would automatically get enabled. This would make everything automated and no need to apply for a hundreds different cards, all of which is very cumbersome.
     
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  11. prototype

    prototype Major SENIOR MEMBER

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    ^^yes u r right,paying tax is a hassle in itself,specially for the business class,tax is directly deducted from the salary in case of employees,which does not make the process much problematic for them,but the biggest problem which remain is accounting,if it made a liitle more satisfactory for the tax payers we can see a liitle improvement,and why did i said liitle improvement,because after that comes ur 3rd point:D
     
  12. gowthamraj

    gowthamraj Lieutenant FULL MEMBER

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    ^ ya lol. But i think tax evasion is not that much compared to our neig:D
     
  13. prototype

    prototype Major SENIOR MEMBER

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    ^^neighbour:confused:who care about them,they can survive on aid's and bailout's,tax evasion is not a problem for them:D
     
  14. HMS Astute

    HMS Astute BANNED BANNED

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    It has been over 4 years now, but the size of Indian economy is still not close to $2 trillion despite having a fabulous growth.
     
  15. Gessler

    Gessler BANNED BANNED

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    Latest IMF WEO report pegs India's nominal GDP at $ 2.047 trillion and PPP-adjusted at $ 7.27 trillion.

    [​IMG]

    World Economic Outlook Database October 2014
     
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