The five trillion dollars dream cannot come to the realization until all sectors perform well
The government whenever it is formed irrespective of the circumstances of a country has an aspiration for the country to look by the time their term ends and the BJP government which is now in power has had this dream for some time now and for which they have done the groundwork by starting programs like ‘Make in India’ and effective trade policies and at the same point of time trying to reconcile with the Purchasing Power Parity (PPP) to help accommodate India into a five trillion dollar economy. That dream is something that a lot of economists have come forward and acclaimed as impractical because to achieve those figures there are two thing that are of quintessential importance, the first of which is clocking double digits growth in all subsequent quarters and the credit growth has to precede the actual growth in the economy which is a tall ask for the markets in today’s conditions a trust in the system is lost, and the big along with small banks are all in the shades of grey but more precisely have been caught hiding the bad debts in their books and also along the process have stopped lending to the NBFC’s which are the direct growth supporters for any country in the world. The second most important hurdle in the race is the bureaucratic hypocrisy that has been rampant and prevalent in the country, without which a lot of administrative reforms and decisions shall be picked in time before the fall of the cracks in the system.
The most important aspect to look at in the scenario is that the five trillion dollar economy dream cannot be accomplished if the country isn’t firing on all cylinders of economic segments which it isn’t at the moment for the auto sector has been constantly under performing to its potential on the back of slow consumption demand and negligible market access for credit growth in the economy.