Niti Aayog’s National Committee on Financial Inclusion and Literacy’s chairperson Bindu Dalmia has said that the government's target of achieving a $5 trillion economy by 2024-25 sounds ‘too idealistic’. She added that the target has been so set to raise the bar of India's economic performance.
She said ‘For now, the ambitious $5 trillion economy target is a statement of intent, which sounds too idealistic’. She further said that India is ‘trapped’ within a range-bound Gross Domestic Product (GDP) growth of 5-6 per cent.
In order to get to a $5 trillion or $10 trillion economy by 2030 from the current levels of $2.9 trillion, she said the country needs to grow at 11.5 per cent annually in nominal terms, or 7.5 per cent in real terms over the next 10 years.
She noted that now, it is not impossible (real GDP growth of about 8 per cent) from the current base. But, it's not easily doable either. She also said that government spending has to be stepped up in the ‘absence’ of private sector participation.
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