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Economy & Business

The economy is thriving and can reach the $5 trillion mark by 2025-26: Officials

The Hawk
November22/ 2022

New Delhi (The Hawk): Despite the current global headwinds, top officials assured a parliamentary subcommittee on finance on Monday that India would be able to reach its goal of becoming a $5 trillion dollar economy by 2025–2026.

The officials added that the Indian economy is doing well and, at its current growth rate of 6.4%, it will be able to reach $5 trillion in GDP by 2025–2026 even though the geopolitical environment is highly unstable as a result of the Russia–Ukraine war, according to sources with knowledge of the situation.

Senior government officials had been invited by the parliamentary standing committee on finance to give their opinions on the five trillion dollar economy's overall outlook and road map.

According to sources, the committee heard presentations from Ajay Seth, the secretary of economic affairs, Parameswaran Iyer, the CEO of Niti Aayog, and V. Ananth Nageswaran, the chief economic adviser, in which they provided projections for economic growth and a roadmap for reaching a $5 trillion economy.

T.V. Somanathan, the finance secretary, was also invited by the panel but was unable to attend the meeting.

According to sources, when committee members questioned the officials regarding employment figures, they were told that the employment situation in metropolitan centres was satisfactory.

According to sources, the Parliamentary panel, which was presided over by Jayant Sinha, a member of the BJP's Lok Sabha, also questioned the officials on the country's private investments, capex, and rising edible oil costs.

In sharp contrast to the bleak picture given last week before the same panel by representatives of three major public sector banks, top officials projected optimism on sustainable economic growth amid global uncertainty.

According to State Bank of India (SBI), Punjab National Bank (PNB), and Union Bank of India (UBI) representatives speaking to the Parliamentary standing committee on finance last week, the goal of making India a $5 trillion dollar economy by 2024–2025 appears challenging and may only be achievable by 2030 at the current GDP growth rate.

According to reports, bank officials told the panel that India's goal of becoming a $5 trillion economy by 2024–2025 would not be achievable at the country's current GDP growth rate of about 6.4%; at this rate, the goal might only be reached by 2030.

By 2024–2025, Prime Minister Narendra Modi wants to grow India's economy to $5 trillion.

(Inputs from Agencies)