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The Indian economy is moving ahead on the path of recovery at a fast pace after recovering from the outbreak of Corona epidemic. India will become a 5 trillion dollar economy in the next four years. Chief Economic Adviser (CEA) V Anantha Nageswaran on Tuesday said that India is in a better and stronger position as compared to other emerging economies. Right now our economy is $33 trillion and achieving the target of $5 trillion is not very difficult.
In the program organized by UNDP India, CEA said that India will become a 5 trillion dollar economy by 2026-27. If you only estimate a modest 10% growth in the economy in dollar terms, then by 2033-34 the size of the Indian economy will be 100 trillion dollars.
Prime Minister Narendra Modi has set a target of taking the Indian economy to $5 trillion by 2024-25 in 2019. The World Bank has recently reduced India’s economic growth forecast for the current financial year to 7.5 percent. Due to skyrocketing inflation, supply chain problems and geopolitical crisis, the growth rate forecast has been changed.
Reduced risk of high inflation
Nageswaran said that the Indian economy is in a better position than other countries. There is also less risk of high inflation. The country’s financial sector is well positioned to support growth. So there is not much to worry about the growth rate.
The pressure of rising inflation after the Russo-Ukraine war is also less than in other countries. He said that the government has also taken several steps to deal with inflation like reduction in import duty, subsidy on fertilizers and cooking gas and reduction in excise duty on petrol and diesel.
Economy able to deal with challenges
The CEA said that India is today in a position where it is faced with challenges due to both global macro-monetary policies and political developments. The economy is ready to deal with any such situation. He said that this year India will face challenges of sustained high growth, bringing down inflation and keeping the fiscal deficit in balance.
If you look at the current worry of inflation, India has come out of the last decade on the strength of its financial system. Not only has the books of banks and the financial sector improved, but the position of the corporate sector has also improved.