India could become a $5-trillion economy in the next 12 years, provided there are deep structural reforms, said Jayant Sinha, Minister of State for Finance.
“If we take our $2 trillion economy and get it on the sustainable 7-8 per cent growth rate, then we have a situation where the economy doubles in 10 or 12 years to a $4 trillion economy.
If the rupee strengthens, we may end up getting closer to a $5-trillion economy,” he said while addressing the Delhi Economic Conclave.
Pitching for deep structural reforms, he said these are required to achieve non-inflationary growth of 7-8 per cent. There is a need to keep inflation between 4-6 per cent over the next few years, he said.
He listed three priorities for the Government in its goal to achieve macroeconomic stability — building world class infrastructure, unlocking entrepreneurial energy and putting in place a social security system.
Sinha also made a case for a supply side revolution to enable the country to dramatically increase its growth potential.