Whether the dream of $5 trillion economy will be achieved before end of decade !


In the year 2019 , Prime Minister said that we will be able to achieve $5 trillion dollar economy by the end of 2024 . Our recent economy is about 2.94 trillion dollars . Achieving $5 trillion economy seems a very far fetched dream in present Covid and economy crisis . When our country is having lowest growth rate in previous three decades this dream seem mirage in the desert. India is world’s fifth largest economy which is growing steadily .
According to chief economic advisor , KV Subramanian , India needs more global sized banks to achieve goal of $5 trillion economy by the end of 2024 – 25 . In the list of top 100 global banks released by the Banker , only one bank from India , i.e. SBI , State Bank Of India , is placed 55 on the list . Same list consists of around 18 banks from China and 12 banks from USA . Even there is six banks from south Korea in the list .
Even if the economy and banking sector were proportional then in the list there must be atleast six banks in the list . Even the small countries like Finland, Denmark, Belgium, Austria and Norway have one banks in the top hundred global bank list . Countries like Sweden and Singapore , where Sweden’s economy is one sixth size of Indian economy and Singapore has size of one eight size of economy , they still have three banks in the global bank list . As per the advisor , our banking sector needs to be proportional or proportional atleast to our economy .
In order to improve our economy , we need more banks because it will enhance the competitiveness and reduce the cost of funds to customer . For instance , USA have twenty times more bank than India but is four time less populous than India . Moreover we need to use technological advancements like data analysis , artificial intelligence and machine learning to catch defaulters and will certainly improve the process of lending .
The times when most of the banks are being merged together , we need to reopen new banks . At the present growth rate of 7 % achieving huge goal of 5 trillion dollars is difficult . We need minimum growth rate of about 9 % to achieve our goal. Our per capita income should rise from $1800 dollar to $3600 dollar . But with our present economy , we are still in the category of low middle income country . We may be able to tackle all the present problems , still tackling the current environment conditions is a bit difficult . We need to achieve this dream by tackling environmental and economical issues alongwith strengthening our social institutions.