Professor Vamsi Vakulabharanam of the University of Massachusetts believes that due to the economic slowdown caused by the Covid-19 pandemic, India may hardly become a $ 5 trillion economy by 2024-25.
Professor Vamsi Vakulabharanam of the University of Massachusetts believes that due to the economic slowdown caused by the Kovid-19 pandemic, India may hardly become a $ 5 trillion economy by 2024-25. Vakulabharanam said that the Indian economy will remain low for a considerable period in the next year compared to its size in 2019. He said that Kovid-19 is clearly the most important reason for the economic slowdown. Because of this, India’s economic decline is very fast compared to other developing countries and the global economy.
Vakulabharanam said, at present India’s Gross Domestic Product (GDP) is less than $ 3,000 billion. If it is to reach $5,000 in four years, the economy will have to grow at an average rate of over 13 percent per year.
PM Modi has set a target of $ 5000 billion economy by 2025
Let us tell you that Prime Minister Narendra Modi has set a target of making the Indian economy a $ 5 trillion economy by 2024-25. The economist said that even if everything goes according to the current growth projections by the Reserve Bank of India and the IMF, but the Indian economy will be less than in 2019 for a considerable period of next year.
Slashed growth rate projections
The International Monetary Fund (IMF) and the Reserve Bank of India (RBI) have recently reduced the growth rate estimates. According to the latest estimates of the Central Statistics Office (CSO), the economy declined by 7.3 percent in the last financial year. According to RBI, the growth rate in the current financial year will be 9.5 percent.
According to the RBI, the growth is estimated at 21.4 percent in the first quarter of the current financial year, 7.3 percent in the second quarter, 6.3 percent in the third quarter and 6.1 percent in the January-March quarter. In the first quarter April-June of the next financial year 2022-23, the real GDP growth rate is likely to be 17.2 percent.
A report by Bank of America Securities (BofA) claimed that India may be delayed by several years to achieve its ambitious target of becoming a $5 trillion economy and the world’s third largest economy. Due to Corona virus, this target can be achieved only by 2030 or 2031.
The report said that if India’s growth rate remains at 9 percent, then it will equal Japan’s GDP by 2031 and if the growth remains at 10 percent, then India will achieve this situation in 2030.
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