Budget 2020: PM Modi's Dream of a $ 5 Trillion Economy is at Risk, Crypto Coins News
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India’s Union Budget will be released on Feb. 1.
PM Modi’s dream of a $ 5 trillion economy hinges on the budget.
The budget could turn out to be ineffective and defeat the PM’s ambition.
A few months after his re-election last year, India’s PM Narendra Modi made a bold statement that the country economy was on track to hit the $ 5 trillion mark by . But it did not take long for India’s economy to lose its wheels, and now, people are pinning their hopes on the Union Budget for a turnaround.
The country’s gross domestic product (GDP) increased just 5 percent in the first quarter of the fiscal year before stooping to a six-year low in the following quarter.
India’s economy is expected to grow at just 4.5 percent this fiscal year, according to brokerage firm Motilal Oswal. If the country sustains this rate of GDP growth for the next five years, PM Modi will fall well short of his government’s aim of a $ 5 trillion economy.
The
current size
of the Indian economy is around $ 2.9 trillion. If India’s GDP keeps growing at a rate of 5 percent, it would take just over 26 years to achieve PM Modi’s $ 5 trillion goal. This means that India’s GDP needs to grow at a rate that’s slightly more than double the current pace.
In simpler words, the Indian economy needs to clock a 29 percent-plus growth rate to hit a size of $ 5 trillion within PM Modi’s timeframe. This is where the this budget is set to be released in the Parliament on Feb. 1 will come into play.
According to the ET survey, only 58. 3 percent of the respondents believe that the 5 percent growth rate is just temporary and the economy will start firing on all cylinders. But then, percent believe that a positive reform trajectory is needed to get India’s flailing economic growth back on track. Nearly we believe that the Period of a fast-growing Indian economy is over.
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