$5 Trillion Economy for whom
- The PMGKY, or Pradhan Mantri Garib Kalyan Anna Yojana,
- A component of the Center’s first COVID-19 relief was PMGKAY.
- The Ministry of Finance is its nodal ministry.
Those who benefit from the National Food Security Act:
- It stipulates that 5 kg of rice or wheat should be given away for free each person each month.
- This is in addition to the 5 kg that ration card holders have previously received at a discounted price.
- For example, AAY (Antyodaya Anna Yojana) families receive 35 kg per month, while Priority Households (PHH) receive 5 kilogramme per month per person.
- Based on information from the 2011 census, there is an 80 crore cap on NFSA beneficiaries and state ration card quotas.
- Initially, the programme also included one kilogramme of pulses; however, this was gradually limited to chana dal only and eventually ended.
Japan’s historical growth trajectory:
- Japan’s economy ranks third globally in terms of GDP.
- Driven by exports and manufacturing, Japan’s economy was the second largest in the world for forty years.
- Following the global financial crisis of 2008, Japan’s populace began to spend less, exports decreased, and government incentives ceased to exist.
- China’s manufacturing boom helped it overtake Japan as the second-largest economy in the world in terms of GDP.
- Japan’s main trading partner is China.
- For the past 14 years, Japan has maintained its third-place status in the global GDP rankings.
The case of India (2021):
- Roughly 41% of the country’s wealth was held by 1% of its inhabitants.
- 3% of its wealth was owned by 50%, according to Oxfam.
- The citizens with limited resources who are financing the envisaged $5 trillion economy include:
- The poorest 50% of the population accounted for about 64% of the Goods and Services Tax (GST) overall.
- The richest ten percent made up 3% of the GST.
- Due to halting digital literacy and questionable educational and skill attainments, labour contribution is neutralised.
- In terms of US dollars, India’s economy is currently the fifth largest in the world.
- By 2027, it predicts that India’s economy would rank third in the world.
- Among the G20, India has the fastest growth rate, outpacing China’s over the past two years.
- According to historical data from the IMF, it took India sixty years, from 1947 to 2007, to surpass the $1 trillion GDP threshold in 2007.
- India’s GDP grew from nothing to $2 trillion in just seven years in 2014.
- By 2021, it had added an additional $1.2 (one plus two) trillion.
- If India achieves the $5.2 (five point two) trillion target set by the IMF by 2027, it will have added $2 trillion in just six years.
In terms of purchasing power parity (PPP), GDP and per capita GDP:
- It establishes the value of a US dollar in that nation.
- India currently ranks third in the world for GDP measured on a PPP basis, with a GDP of $13 trillion (PPP).
- The largest is China ($33 trillion PPP).
- At $9 (twenty six point nine) trillion, the US is ranked second.
- PPP conversion ratios can differ significantly between nations.
- There may be large differences in the prices of goods and services.
- India’s PPP to dollar conversion ratio is 3.5 (three five), about twice as high as China’s, which is 7 (one point seven).
- For instance, if one US dollar can purchase a hamburger in its native nation, it can also purchase 3.5 hamburgers in India and 1.7 hamburgers in China.
- India has the lowest per capita income among the G20 nations, both in terms of PPP ($9,073) and dollars ($2,601).
- From 1981 to 2016, China’s one-child family policy paid off, increasing per capita GDP to $23,382 PPP.
- At $80,035, the US has the highest GDP per capita.
Direction of Travel:
- The government knows that the wealthiest are putting themselves in a prime position to provide the $5 trillion.
- This will increase the power and influence of affluent India overseas.
- The Minister of State for Finance stated in Parliament the sectors and instruments available to the government to accomplish the goal: “Reduction in corporate tax, GST, insolvency and bankruptcy code, energy transition, digital economy, fintech, Made in India, Start-Up India, and production linked incentives.”
- The required catchphrase “inclusive growth” comes before them.
- The marginalised citizens are not indigenous to these cutting-edge fields or instruments.
- They are unable to take use of the prospects in robotics, fintech, data science, artificial intelligence, or robotics, either now or in the next five years.
- The distribution of the $5 trillion GDP, or the inequality index, is the focus of the race. World Economics created this index, which ranges from 0 to 100.
- A higher value denotes a more equitable community.
- China and Japan both have values greater than 50.
- India, with a $2,400 per capita income, is ranked 149th out of 194 countries in 2022.
- At $34,000, the ordinary Japanese person is thought to be in a better financial situation than the average Chinese person, who makes $13,000.
- despite the fact that China now leads Japan in terms of global GDP.
