Kolkata ; January 22 :- Though India is all set become a 5 trillion dollar economy by 2024 as desired by Prime minister Narendra Modi with considerable annual growth of GDP, it would never be considered as a ‘rich country’ like the USA,Sweden,Germany or even South Korea, primarily because of its vastness and numerous other socio- political issues.
This view was expressed here Tuesday by renowned Economist and former bureaucrat Ajay Shah during an interaction while releasing his co authored book on the economic policies of the country entitled ‘In Service of the Republic:The Art and Science of Economic Policy’.
Referring to the overall economic scenario of the country which had seen many ups and downs during the past seven decades since Independence, Dr Shah, who has co authored the 500 odd pages book with his former colleague in the department of Finance Vijay Kelkar, also a Mumbai based well known economist, however, stated that the GDP growth of India reached its pinacle during the 20 years period between 1991 and 2011 when the annual GDP growth went up as high as 16 per cent before it came down around only about 6 per cent now.
During those ‘Golden years of economy’,India also witnessed the maximum investment from the Private sector industries with the most of the Public sector units taking the back seat and their efficiencies.
Trying to find a reason for the gradual decline of growth since then,Shah,quoting from his book which was released for the first time today, said the policy paralysis of the subsequent governments at the Centre as well as those of the states were to be blamed for this gradual downfall .
Though several steps were initiated since 2014 ( when the Modi government assumed office for the first time),because of massive public demand for ‘immediate results’ had not only make most of them more or less useless but also a huge waste of public money, Shah said and cited the example of the ‘Insolvency and Bankruptcy Code’ of 2016 which, he said despite having huge potential to help turnaround the Banking industry, pleagued with huge burden of Non Performing Assest, failed to do proper justice so far.
‘Because of unnecessary hurriedness on the part of a section of political leadership and the bureaucracy, it is yet to deliver the desired results’, he once again pointed out.
Later replying to queries about the possibility of India becoming the world’s 6th largest and a 5 trilion dollar economy within the next four to five years,Shah made it clear that he was very optimist that India would indeed reach its milestone on time by maintaining a steady growth of Economy from this year itself with a slew of positive steps taken by the Modi Governmernt.
‘But I do not think India would become a rich country like the USA, Sweden, Germany or even South Korea who have done trendous progress in terms of GDP growth’, he said.
When further asked that whether the population explosion was anything to do with such limited growth with large number of people in India, unlike those of the Western World,still remaining below poverty lines, Shah partially agreed with the view but without naming any other economy said ‘if other countries could do, we can do better’.
Though initially the book would be available only through on line platforms like from Amazon India,later it would also be available in several leading book stores across the country off line, Shan informed.
The book release programme this evening was organised under the aegis of Indian Chamber of Commerce (ICC) and its Director General Rajiv Singh and past President Rudra Chatterjee were present among others.