India’s economy has challenged the entire world with a great increase in GDP Growth, from the past four years; the country has grown strong in terms of purchasing power parity. India’s economy has increased by about 6.8% in the year 2018-2019. The country has a developing mixed economy, being the seventh-largest economy in terms of GDP and third-largest by purchasing power parity. India has now been declared as the world’s fastest-growing country in terms of GDP surpassing China.
But the real challenge arises now, as India faces new challenges from other nations and also with international trade deficits. ”It is high time to bring about a lot of changes in India’s public expenditure sector,” says the economists of India. India’s great economists have shared their opinion and have suggested a few points to bring about a change and growth in the GDP.
A few suggestions include; change indirect tax, which is being imposed on transactions. New rates have to be included in the goods and service taxes (GST), such as 6%, 12%, and 18%, pruning the numbers of public expenditure policies might lead to the increase in nominal GDP rates. Privatizing the “central” public sectors may also lead to an increase in nominal as GDP as well as purchasing power parity. I hope the Indian Government reconsiders all these points which may lead to a humungous growth in the nation’s GDP and Hope the Government is ready to face the challenges which are ahead of them.
India has high national debt, accounting for 68% of GDP, while its fiscal deficit stood at 3.4% of GDP. However, the actual fiscal deficit as reported by the CAG in 2019 is 5.85 percent of GDP