Chief Financial Adviser (CEA) V Anantha Nageswaran on Tuesday mentioned India would grow to be a USD 5 trillion economic system by 2026-27 and USD 10 trillion by 2033-34. Addressing an occasion organised by UNDP India, Nageswaran mentioned India is comparatively higher positioned than different rising economies.
“On the face of it, appears to be like optimistic, even bold, but when we get to USD 5 trillion by 2026-27.
“We are actually USD 3.3 trillion, it’s not such a tough goal to achieve. Then if you happen to merely assume 10 per cent nominal GDP progress in greenback phrases, then you definately get to USD 10 trillion by 2033-34 and one other doubling with the identical charge,” he mentioned.
In 2019, Prime Minister Narendra Modi envisioned to make India a USD 5 trillion economic system and international powerhouse by 2024-25.
The CEA mentioned there’s a want for local weather tagging of the funds.
“GDP is the worst measure of financial actions however for all others. As a result of all the things else you are taking, comes with their very own limitations and critical subjectivity,” he famous.
The World Financial institution has minimize India’s financial progress forecast for the present fiscal to 7.5 p.c as rising inflation, provide chain disruptions, and geopolitical tensions taper restoration.
India’s economic system grew 8.7 p.c within the final fiscal (2021-22) towards a 6.6 p.c contraction within the earlier 12 months.
In its third financial coverage of 2022-23, the Reserve Financial institution retained its GDP progress forecast at 7.2 p.c for the present fiscal however cautioned towards destructive spillovers of geopolitical tensions and a slowdown within the international economic system. Nageswaran mentioned India must begin investing in getting the appropriate provide of metals and minerals required to gas the power transition.