India’s economy can grow steadily at 8% over the next 20 years, which will lead to the creation of up to 1.5 crore new jobs and lift 3.5 crore people out of poverty each year on the basis of the government’s capital investment strategy, Union Minister Ashwini Vaishnaw said on Saturday. Addressing Assocham’s annual general meeting, he said the government had set itself the target of increasing the level of capital investment in the budget from 27% of GDP to 35% over the next few years. years.
“We follow the capital investment strategy for 5-6 more years, we can grow at 8% steadily in the next 20 years, which means, every year, almost 1-1.5 crore of new jobs, 30-35 million people coming out This is the change we can bring to our society through this thought process,” Vaishnaw said.The Minister said that India was a consumer driven economy in the past and that the Prime Minister has taken a “path of faith” to increase capital investment despite the reluctance of several economists.
“Many European countries have followed the prescription of the Nobel laureates and they are in a very bad situation. We decided to choose the path which had three elements: public investment, very targeted consumption and reforms and incentives for private industries,” Vaishnaw said. noted. He said Germany, the United States, Japan, China and South Korea have followed the same path of capital investment for several years.
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The minister said that the country’s nominal GDP at the end of the financial year 2021 was 198 trillion rupees and the target was to reach 225 trillion rupees. In this economy of 198 trillion rupees, nearly 116 trillion rupees came from consumption, which accounts for about 59% of GDP, and 53 trillion rupees came from investment, which accounts for only about 27% of GDP, said the Minister. The government, after analyzing that its liability is around 60 percent of GDP, has decided to increase capital investment.
Vaishnaw said the Center receives around Rs 20 trillion while the gross tax revenue and net tax revenue after removing the state government share is around Rs 15 trillion and the revenue not taxes of about 3 trillion rupees. “About Rs 18 trillion is the total revenue the Indian government gets from the revenue side,” he said.
He said the way our economy is structured, 13 trillion rupees will go to the MSME sector and nearly 10 trillion rupees will go in the form of wages and salaries, which will result in spending in several sectors. The Minister said that people who work in the brick and mortar industry may have seen that the plant’s capacity utilization was around 60-70% a year ago, which has now reached around 80-85% and in some sectors it has reached 90-95%. percent where people are now considering creating new facilities.