Declaring its aim to make India the third largest economy in the world by 2030, the BJP on Monday promised to promote investment-driven growth to build a “New India” and make it a $10 trillion economy by 2032.
“We aspire to make India the third largest economy in the world by 2030. This implies that we commit to make India a $5 trillion economy by 2025 and $10 trillion economy by 2032,” the Bharatiya Janata Party (BJP) said in its election manifesto, which was released on Monday.
The party said India was clubbed in the “fragile five” in 2014, but in the last five years, the Narendra Modi-led government has turned the country into a bright spot that is now not only the fastest growing major economy in the world, but also enjoys macroeconomic stability.
While expanding the social security net for the poor and the farmers, the BJP has drawn a capital investment plan of Rs 100 lakh crore in the infrastructure sector by 2024 to build a “New India” on the basis of investment-driven growth.
“We recognise that investment-driven growth requires cheaper cost of capital. By anchoring inflation at 4 per cent and cleaning up our banking system, we have created the space for structural reduction in the cost of capital. This will not only help infrastructure investment but also investment in the wider economy,” the party said.
The BJP said the second term of Modi government, if it returns to power, will position India as a global manufacturing hub over the next five years. It will also initiate ranking of central Ministries and state governments on the basis of innovation and new technologies.
Highlighting the achievements of the BJP government, the party said it delivered the highest rate of average GDP growth at 7.3 per cent and maintained the lowest rate of average consumer inflation at 4.6 per cent as compared to any other government post-1991.
“This has been achieved with lower fiscal deficit and significantly lower current account deficit (CAD) as a percentage of GDP… Reduction in fiscal deficit of this order implies lesser burden of debt on future generations by almost Rs 16 lakh crore,” it said.
The average fiscal deficit as a percentage of GDP during 2014-19 is down to 3.7 per cent from 5.4 per cent during 2009-14 and the average CAD as a percentage of GDP has fallen to 1.5 per cent from 3.3 per cent during 2009-14, the BJP manifesto said.
The BJP said its principle of lowering tax rate, improving compliance and broadening the tax base has raised the tax to GDP ratio to 12 per cent from 10.1 per cent in 2013-14. Further, the Goods and Services Tax (GST) revenue has increased by 50 per cent for all states in three years.
The party manifesto promised to further improve India’s Ease of Doing Business ranking to get it among the top 50 countries in the world and chalk out a new industrial policy with an eye on Industry 4.0 with technologies like artificial intelligence and electric mobility.
To strengthen the startup ecosystem in India, the BJP promised easing regulatory requirements, creating 100 innovation zones, setting up 500 new incubators and accelerators by 2024, and initiate ranking of central Ministries, departments, state governments and CPSUs for their increased engagement with startups and in bringing in innovation, newer technologies, global practices and skills.
“We will continue to promote and encourage startups through the creation of a ‘Seed Startup Fund’ of Rs 20,000 crore,” the party said.
The manifesto also stated that the tourism sector will get a special focus as it brings together many different service segments. In particular, specific places of cultural or natural importance will be identified in order to develop them as comprehensive destinations, instead of leaving them as isolated sites, it said.