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India’s economy will grow quickly in the coming decades, according to Union Minister for Commerce and Industry Suresh Prabhu [suu-REHSH PRUH-boo].
Prabhu has predicted that India’s economy would be worth $5 trillion in the next seven to eight years. He added that by 2035, it would hit the $10-trillion mark. Prabhu announced his predictions through a recorded speech at the 2018 India International Trade Fair, an annual event attended by many businesspeople.
Prabhu’s predictions were based on India’s gross domestic product (GDP) growth. GDP is the monetary value of all goods and services made in a country and is a good indicator of a country’s economic health.
In the same speech, Prabhu explained that the future economic growth of India would be impossible without its interactions with other countries and its policies supporting businesses. With these business-friendly policies, India even placed 77th in the Ease of Doing Business index, which lists countries with the simplest regulations for businesses. Currently, the Indian government is improving its policies further in hopes of climbing to a higher rank.
Prabhu also claimed that India’s growth would ride on the country’s structural reforms and the government’s transparency.
If Prabhu’s predictions come true, India’s economy will be the third largest economy in the world in 2030. According to a report by the Hong Kong and Shanghai Banking Corporation (HSBC), having a GDP of $10 trillion can help India overtake Japan and Germany. To achieve this, the HSBC advised the Indian government to pay more attention to the social sector, such as health and education.