The Prime Minister Narendra Modi-set target of Indian economy turning as voluminous as $ 5 trillion by 2024 is near-impossible to meet, suggests this year’s Economic Survey. Economists believe that to reach this goal, the GDP growth rate should be 8% per annum. But in the first year of chasing this goal set by the prime minister, the GDP grew at around 5% or a notch below that level. This will more or less remain the rate of growth next year. The Modi government itself believes that the GDP growth rate will be 6-6.5%.
India in 2018 was expected to grow at a break-neck speed in 2019, but that did not happen.
The government has presented the Economic Survey for the year 2019-2020 in the parliament. This survey report states that the GDP growth rate will be 6-6.5% in the financial year 2020-21. That is, the Indian economy is lagging in the speed of about 1.5% to meet the target of $ 5 trillion by 2024.
If the GDP growth rate is 6-6.5% in FY 2020-21, it is projected to attain a pace of above 8% in three years to turn Indian into a $ 5 trillion economy. The data of the Economic Survey before Budget 2020 has given a shock to the government on the GDP growth front.
When the Modi government came to power again last year, it announced in the annual pre-budget exercise of Economic Survey before the budget in July 2019 that the Indian economy would be as big as $ 5 trillion by 2024. It was estimated that by 2024, at least 8% GDP growth rate would be needed to achieve this goal. But the government itself had its projected growth of the GDP as 5% in the current financial year (2019-20). It is now estimated to be 6-6.5% for 2020-2021.
On 1 February, Finance Minister Nirmala Sitharaman will present the annual budget of the union in the parliament for 2020-21. Prior to the budget, Prime Minister Modi was seen active on the economic front. He held meetings with several big industrialists and economists continuously this month. The issue of achieving the target of being a $ 5 trillion economy figured in the meetings.