5 trillion economy

Dr. D. Mukhopadhyay
Of late, India is one of the most visible nations in the map of the world as there is an effort on the part of the government to make the world know what India is in terms of her potential though she has been enormously contributing to the cause of human development since time immemorial. But India had hardly felt to get her contributory achievements documented against any target and before taking any futuristic developmental project at national or international level, fixing a target is a must since target makes the achievements measurable and when it is measurable , gap analysis becomes much easier which consequently helps in adopting appropriate steps for accomplishing the ultimate goal. It is a pre-requisite to have a scientifically formulated target in the form of benchmark while any project is conceptualized. In recent past, Prime Minister of our country has given a call to the nation to contribute sincerely its efforts to make India an economically viable and envious nation in the world and has given a target for achieving a Five Trillion US Dollars Economy by 2024. Currently India’s GDP is expected to be about $2.832 Trillion at the end of Quarter II of the Financial Year 2020. It is imperative to know that India’s GDP in 1987 and 2018 were at 0.279 Trillion US Dollars and 2.726 Trillion US Dollars respectively and during last thirty one years it was added only by 2.447 US Dollars figure of 2018 which reflects 7.67% Compounded Annual Growth Rate.
It may sound logical to derive that inference that it is definitely a challenge for India to achieve the set economic target of Five Trillion US Dollars by the years 2024 since India could add only to the tune of 2.447 Trillion US Dollars to the figure of 0.279 Trillion US Dollars in 1987 i.e. during a time span of thirty one years(2018-1987) and adding to tune of 2.17.8 Trillion US Dollars in order to achieve the set economic target of 5 Trillion US Dollars in just four years (2024-2020) may not appear to be utopian but achievable provided all sectors of the economy is set on industrial wheel and gain momentum for generating considerably much high rate of growth of GDP for Quarter on Quarter basis not less than 11 % during the period to reach 2024. As on date India’s GDP growth rate more or less stands at 4.78%. Therefore, it is to ponder with seriousness and every sector of the economy needs to have strong infrastructure to produce the desired economic results and National chambers of Commerce, Industry, Professional Bodies, Industry Captains , Institutional Investors are to come forward to make this mission achieve. In this context, it is worth mentioning that the Institute of Cost Accountants of India (ICAI, popularly known as ICMAI), the national Professional Body of Cost & Management Accountants(CMAs)has already come forward to help the decision makers in preparing the strategic road map and process for policy implementation so that the nation can achieve the set economic target under the leadership of Prime Minister through which India can earn her capability to occupy an economically respectable room in the global economy. The ICAI had organized for a Three Day Global Summit titled “Mission USD 5 Trillion- CMA As a Cryogenic Force” held during 9th January, 2020 to 11th January, 2020 in New Delhi where various relevant, prominent and path-breaking and thought generating issues and topics were deliberated upon by national and international stalwarts belonging to different domains of knowledge and expertise including many central ministers. This is definitely an encouraging step from a Body of Professional of Management Accountants of the country. USD 5 Trillion Target by 2020 set by Hon’ble Prime Minister of India needs an enormous burst of energy in order to propel simultaneously almost every sectors of the economy. It is important that every sector of the economy has to have a set target and the same needs close monitoring strategically.
The corporate India needs to reorient its manufacturing and service generating processes for executing the formulated policies in time-bound manner. Besides the corporate entities, non-corporate entities too need to align themselves keeping in view the set target to channelize the factors of production and distribution from compliance orientation to value additive approach for which they need to adopt sustainable development strategies. Micro, Small and medium enterprises are to be empowered in the model of the USA where more than 80% enterprises are operating under the canvas of this format and it is very obvious to have the targeted economic growth achieved once job-seekers are converted into value creators and the industry and commerce captains are required to implement their target driven strategies towards the goal set forth not simply with the “Business as Usual Approach” but there is a dire necessity of the new and result fetching contrivances in the form of levers so that it is able to geometrically boost up the outcomes to touch and achieve the milestone of the national demography. This calls for mindset changing of the investors in order to assume the calculated business risks to maximize value with the help of adopting disruptive technology such as Artificial Intelligence, Robotics, Internet of Things , Bloch Chain, Data Science, etc. are all modern cost management techniques. India needs to orient her production and distribution system to zero defect philosophy and for implementing this into practice, Kai-gen Costing, Target Costing, Life Cycle Costing , Theory of Constraints, Pareto Technique, Total Quality Management, Six-Sigma and other quality management tools are to be made of wider and intensive use as quality and cost are two important determinants of the extent of the market of ‘Make in India’ products. Again delivery of cost tree Quality is perhaps impossible and modern technology can only act as bane for cost reduction and modern cost management techniques and tools are indispensible for generating and dissemination of cost information for the purpose of scientific decision making at both tactical and strategic levels. Startups and venture capitalists are important business producing engines and they need to continuously be motivated and encouraged to achieve their targets in time-bound manner. Time has a value which is prime parameter for determining purchasing power of money. Therefore, once a project is approved and taken off, ceaseless monitoring is necessary for completion of the same otherwise, it would add more and more to the cost of production and hence price and price plays an important role in process of demand creation.
It can be observed that most of the economically developed countries in world are digitally governed because certain level of understanding and taking part in such movement, education is must and people of those countries are almost not simply literate but educated attributed with capacity to interpret the essence of digitally governed systems and once it is technology driven, cost of production and generation shall be coining down. Some of my friends may opine that digitally driven production and distribution system may act as non-conducive mechanism for employment generation against which my argument is very simple that digital driven environment is also expected give rise for downstream business and it would consequently lead to economic transformation which is expected to grossly facilitate the process of achieving the set target. Achieving the set target is possible only when the rank and file in the economy take part sincerely and collaborated and concerted approach in the place of isolated approach is attached with priority. Financial sector, manufacturing sector, service sector, agricultural sector, mining sector, education sector , healthcare sector etc are propelled simultaneously towards the set target and use the available resources judiciously by preventing and controlling wastes with strategic cost management approaches, though it may be difficult to achieve the set mission but it does not sound to be impossible. Keeping a target is a must for achieving anything and what we cannot measure cannot be managed. Therefore, USD 5 Trillion Target is definitely a step forward for fulfilling our aspiration to become a member of the league of everybody from being in the group of somebody in forth coming days.
( The author is Professor of Management & Dean-Faculty of Management, Shri Mata Vaishno Devi University , Katra)
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