New Delhi: India can become USD 5 trillion economy in the next 10 years if it grows at an average 7-8 percent, Minister of State for Finance Jayant Sinha said Tuesday.
He said the country needs to sustain a growth rate of 7-8 percent to have at least a chance of offering jobs to 10 million young people.
“The only way we can do that we can get economic growth of 7-8 percent and really start to create more jobs in the formal sector. Now if we do that we can go from USD 2 trillion to USD 5 trillion economy over next 10 to 12 years,” he said.
The size of Indian economy at present is USD 2 trillion.
“We have USD 2 trillion economy right now which has grown at 6-7 percent CGAR in the last 10 years. It’s fairly decent performance where we have genuinely lacked is in terms of job creation,” he said.
“In the organised sector we are barely creating 2-3 million jobs a year. We are unable to absorb may be 10 million people each year who are coming in to the work force. May be there is a 100 million unemployed people out there,” he said.
“Only way we can get that kind of job creation is through economic growth…We need to get to a point where we are sustainably growing 7-8 percent a year, so that we at least have a chance, that we will have a chance of absorbing these people,” he said.
Terming 10 million job creation a as extraordinarily daunting, he said it can be achieved only through economic growth.