ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Jayanta Kumar MallikSubscribe to Jayanta Kumar Mallik

Can India Raise Its GDP Per Capita to $5,000 by 2030?

The ebbs and floods of investment and growth in the Indian economy in the past two decades are rooted in the movements in steel prices. Short-cuts used in the compilation of macro statistics obscure the policy debate by creating incongruous images: real investment growth is rising, but the rate of investment is sliding; doing business is easier, but business activity is growing slower. If policies are pursued to facilitate business activity, and better methods are used to measure it, India can raise its gross domestic product per capita to $5,000 by 2030 (from $1,965 in 2017).

India's Exports

Export strategy in India confronts several issues, especially the choice of policy instruments. Questions are raised about the utility of the prevailing export promotion schemes, even while these interventions are considered necessary to keep India's exports competitive in the international market. The appreciation of the rupee vis-� -vis the US dollar raises concerns regarding its adverse consequences on export performance. This paper observes a positive association between exchange rate movements and exports, which defies the conventional wisdom. Instead of treating this phenomenon as perverse, as in the literature, the paper underscores the crucial role of explicit or implicit subsidies and market structure. The paper argues for a reorientation of Indiaâ��s export strategy.
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