Is India Vision 2020 achievable? India is a land of vision and great philosophers, kings and scientists led a vision for India. India Vision 2020 was a paper formulated by Technology Information forecasting and assessment Council (TIFAC) under the leadership of Dr APJ Abdul Kalam and another 500 experts. The paper focuses on the development of core economic sector:- • Agriculture and food processing • Infrastructure • Education and Health • Information Technology and communication • Critical technologies and communication The paper provides an insight about the country development with focused approach, will and determination. However, with the present economic scenario, it is difficult to achieve the same. European economy is in turmoil. Greece, Spain, Portugal and other European countries are in a danger of deep recession. US industrial growth is also in the declining stage. These factors led to fall in investor confidence. Growth in emerging markets like India and china is also showing signs of slowdown. The India GDP rate for the last quarter of 2011-2012 at 5.3% is disappointing. The balance of payment of India increased from $9 bn in 1990-91 to whopping $105 bn in 2011. The major concern is fall in the FDI due to political uncertainties and global cues. Study by London Business School A recent study by London Business School pointed out 7 reasons why India is unlikely to be a superpower. The reasons stated are:- • Challenge of the naxalites • The insidious presence of the Hindutvawadis • The degradation of once liberal and upright centre • The economic disparity between rich and poor • Instability and policy incoherence caused by multi-party coalition governments • Irregular environmental regulations • Trivialization of the media Falling GDP and GDP per capita Current economic disparity is causing social unrest. The Gdp rate, which was on the high tone of 8 to 9 % for the last 3 to 4 years, fell suddenly to 6 to7 %. The Gdp per capita also fell side by side. Depreciating INR The Indian rupee depreciated against dollar sharply by 6.86 % and it was the worst performer amongst the Asian currencies. It had lost 12 percent of its value after it has touched 43.85 in July, 2011. Rupee depreciation led to increase in cost of borrowing to corporate sector and have a severe impact on import bill. Falling Credit Rating Let’s talk about giant financial institution and rating agencies of the world like Morgan Stanley, IMF, S&P etc. Here is the glimpse of the results of our country’s financial performance:- • IMF lowered the growth forecast of India to 6.9 % from earlier 7 %. • Standard and Poor‘s degraded the outlook to negative from stable. • Standard and chartered lowered its 2012-13 GDP growth outlook for India to 6.2 % from earlier 7.1 %. • Morgan and Stanley scaled down to 5.7 % from 6.3 % in this current fiscal year. Major rating agencies also lowered the rating of Indian banks and financial institutions. Can this crisis be resolved? This is a million dollar question and the answer is yes. The current situation does not seem favorable but Indian growth story is still intact than other developing economies. So, this is the perfect time for the government to take corrective actions and show their commitment for the nation’s development. Some of the suggestions are:- • Government should focus on infrastructure sector and make attractive bond offer. • Government may consider reducing temporary imports. • Government should make political consensus healthy for the investment. • The government can make attractive investments and invite long term funds in retail sector for those states that are willing to open their gates. Effective policies and strong measures will undoubtedly go a long way in reviving the economy and directing it towards progress. With correct policy decisions, India can still achieve its vision of 2020.