File photo of Suresh Prabhu. Photograph:( Others )
Union commerce and industry minister Suresh Prabhu on Friday exuded confidence that India will become a $5 trillion economy in the next seven years, adding that India will be a bigger economy than China at some point of time.
India’s GDP, at present, is estimated $2.5 trillion and that of China is $11.85 trillion. In October-December quarter, India posted a GDP growth of 7.2% to reclaim the tag of world’s fastest-growing major economy from China.
“I am very sure, you take a medium term, India will grow at a much faster rate. We will be a five-trillion-dollar economy in seven years’ time,” Prabhu said at an event in New Delhi.
The minister said that his ministry has already prepared a paper on how India can become a larger economy. He said the manufacturing sector would contribute $1 trillion, services sector $3 trillion and the rest would come from agriculture for the country to become a $5 trillion economy in the next seven years.
“After that, in next 7-10 years time, maybe a $10 trillion economy. China still will be growing. I am not saying China is just going to wait there at $11.8 trillion, but when they will start slowing down, we will start growing faster. I am sure one day we will be a bigger economy,” the minister said.
Prabhu also spoke about various steps being taken by the government to increase India’s exports. He also expressed concern over “growing voices of protectionism” and said that opening up of economies is necessary for global growth. “We have seen after formation of WTO all the countries have benefited. Some countries benefited obviously more than others like China is the biggest beneficiary of WTO,” he said.
The talks at the WTO’s 11th ministerial at Buenos Aires in December had collapsed with the US going back on its commitment to finding a permanent solution to the public food stockholding, a key issue for developing countries like India. Soon after the collapse of the talks, Prabhu had announced that India would be hosting a mini-ministerial with a view to breaking the deadlock.
The informal WTO mini-ministerial is scheduled to be held in New Delhi on 19-20 March with an aim to find out common ground to carry forward the mandate of World Trade Organization.