India has seen many growth accelerations. The first decade after Independence saw the economy expand after what were essentially nearly five decades of stagnation at the end of the colonial era. The first tentative reforms during Indira Gandhi’s second term in office helped economic growth accelerate to around 6% a year. This growth rate more or less held for two long decades before the next surge saw our sustainable growth rate rise to around 9% in the first decade of this century. The next stop: double-digit growth.
The new Economic Survey released on Thursday says that India is on the cusp of growing at double digits, a move that will soon make us the fastest growing economy in the world as China grows richer and older.
Such growth will ensure that average incomes double every eight years or so, which means that India’s per capita income could cross $2,500 by 2020 at current exchange rates.
Double-digit growth will bring in tax revenues to fund social safety nets and generate jobs for a young population.