Minister for Commerce and Industry, Piyush Goyal has recently said that India is set to become a $30 trillion economy in the next 30 years. There were several speculations and ‘nay-saying’ related to his statement. However, the minister seemed to be having all the facts and figures aligned. He was addressing some of the country’s leading exporters and textile manufacturers, while inaugurating SIMA Texfair 2022 at Coimbatore, on Sunday.
Several think-tanks were quick to comment on the statement given by the minister. Some even questioned the possibility of this figure being achieved by the Indian economy. The minister however, had all the explanations required. He gave the reference of the current GDP figures of the country, which stood at $3.3 trillion in FY22. He explained, in details, as to how the massive figure of $30 trillion can be achieved.
The most important figure, as stressed by Mr. Goyal, is that of 8% CAGR. He explained that if India continues to grow at a constant rate of 8% and more, the economy is set to double in next 9 years. This would take the economy to $6.5 trillion in the next 9 years. Continuing on the same rate, 18 years from now, it would reach $13 trillion. The minister said that as per the above calculations the GDP standing of the country is set to reach $26 years in the next 27 years. Hence, the figure of $30 trillion can be achieved in the next 30 years.
When further questions were raised about the factors that can impact the achievement of these figures, the minister quoted the example of Tiruppur, itself. He said that 37 years ago, exports from Tiruppur were just about Rs. 15 crores. In the past years, Tiruppur has emerged as a major global apparel hub and the exports have risen to Rs. 30,000 crores. This is the growth figure of about 23%, which is phenomenal.
He also gave reference of the efforts being made by the Government of India to further promote the country’s trade and exports. He added that the central government, led by Prime Minister Mr. Modi is working in close conjunction with several countries to finalize free trade agreements. This would mean that these countries would grant zero duty access to our domestic textile sector. Textile manufacturers, traders and exporters from our country would be able to sell the products, without additional tariffs and duties in the international market. This development is related to the textile sector and when such developments from all other sectors would be clubbed together, it would create a greater impact. Mr. Piyush Goyal also holds the portfolio of Minister of Textiles.
Employment has been a topic of great discussion in the recent past. Goyal also highlighted the intention of the central government to promote both man-made and cotton based textile sector. He said that the increased share in the global market would create more job opportunities for the youth. This development would also mean that the sector is set to attract more investors. He said that the government is committed to identify and develop around 75 clusters across the country, which would be based on the lines of Tiruppur.
The minister also highlighted the fact that Indian economy is on the fast pace, after the pandemic. It is expected to do better amidst the ongoing Russia-Ukraine crisis. He highlighted the government’s role in keeping the inflation under control, despite the odds. The war has impacted the global supply chain network and the worst hit commodity is oil. He said that the Modi government has managed to keep the oil prices under control.