It is not credible that the Indian economy will reach the touted $5 trillion target by 2025, even in the unlikely event the rupee appreciates dramatically. But it won’t be a national calamity and the goal may well take an additional eighteen months to achieve, if growth rates revive to 7.4%. More to the point is the need to judge the Indian economy’s performance and condition from a long-term perspective and the imperative to adopt policy changes necessary to resume a higher growth trajectory. However, it must be remembered that India is a challenging country to govern, which experiences competing demands that routinely threaten to turn into violent unrest if they are not met. Balancing competing claims for immediate gratification and the need for investment in infrastructure to augment long-term growth requires considerable political dexterity and policy acumen.
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