Economic & Finance

India needs 9% GDP growth to reach 5 trillion economy: EY said

5 trillion economy

Ernst & Young(EY), in the latest edition of ‘Economy Watch’, mentioned that it is possible to reach the government’s dream a 5 trillion economy if India’s GDP grows consecutively with a 9% growth rate for next 5 years.

EY said that if we achieve the target of 9% growth rate every year then the size of the Indian economy will grow to $3,300 billion in 2020-21 Fy year. It will reach $3600 in the next FY year 2021-22, $4,100 in 2022-23, $4,600 in 2023-24, and $5,000 in the FY 2024-25.

According to the report India needs a 7% GDP growth rate to reach a $3,000 economy by the end of March 31, 2020, which is currently $2,700. If we achieve a 7% target rate by the end of 31 March 2020 then we will need to maintain a 9% growth rate every year for the next 5 years to achieve the 5 trillion economy.

The report said that to achieve the growth rate of 9%, the investment rate in India will need to be brought to 38% of GDP, which is currently noticed at 31.3% in 2018-19. The actual growth rate of 6.8% was noticed in it.

The highest investment rate of 39.6 was achieved in India in FY 2011-12, which includes public investment, domestic investment, and private sector investment.

According to the latest report of depository, foreign portfolio investors(FPI) has withdrawn Rs 2,632.58 crore from the stock market during the period of August 1 and withdrawing Rs 248.52 crore from the loan or bond market. Thus, they sold a total net worth of Rs 2,881.10 crore.

This incident took place during the first week of August when the Indian market has fallen on the global and domestic front.

Earlier, with the withdrawal of Rs 2,985.88 crore from the Indian capital market (both shares and bonds) by FPI in the period of July 1-31. These two major events have led to a decline in the Indian economy.

Most Recent: Around 6.83 lakh Companies Shut in India, Most are from Mumbai-Delhi.

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