New Delhi: Indian economy is expected to be a $ 6.5-7 trillion economy by 2030, and at the current exchange rate it would touch $10 trillion by 2035-40, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM) Bibek Debroy said on Thursday. The per capita income in India by 2030 will, however, be just $4,000, still less than many other countries, he said. "In the year 2030, India's national income will be around $6.5-7 trillion. If exchange rate remains what it is today then by 2035-40, India will be $10 trillion economy.
"And if exchange rate appreciates then India will be $10 trillion economy before 2035," Debroy said at Skoch summit here. India will be remarkably different country as the size of its economy will enhance the country's role in global affairs, he said.
He also said that people are not seeking government jobs today, instead more and more people are providing jobs to others. Talking about the issues related to land, Debroy said it is a contentious issue and it is very inefficiently used in India. "We don't have clear system of land titling." A few days ago, Debroy had also said that eliminating tax exemptions can help increase the tax-to-GDP ratio. Blaming India Inc's lobbying for tax exemptions, Debroy, early this month, remarked that he hopes that the government panel tasked with reviewing the Income Tax (I-T) Act would look into this aspect.
He, however, was quick to add that a "consensus" is yet to evolve on the subject and any announcement is unlikely in the next Budget. Debroy claimed revenue worth 5 per cent of GDP is lost to exemptions and if these exemptions are eliminated, the tax-to-GDP ratio will be 22 per cent.