Expressing optimism over growth of Indian economy, PHD Chamber of Commerce and Industry’s President Sanjay Aggarwal has said that the economy is going to attain its fastest growth trajectory from the next financial year 2021-22 onwards. He appreciated the dynamic reforms undertaken by the Government during the last 7 months to mitigate the daunting impact of pandemic COVID-19 on trade and industry. He stated that the average GDP growth of Indian economy in next five years from 2021 to 2025 will be at 7.8%, highest as compared with top 10 economies including 6.2% of China, 3% of France, 2.9% of United Kingdom, 2.9% of Canada, 2.4% of United States, 2.3% of Germany, 2.3% of Italy, 2.3% of Brazil and 1.4% of Japan.
He added that the size of the economy will increase from Rs 203 trillion in FY 2019-20 to Rs 331 trillion in FY 2025-26 at current prices, which becomes at around $4.42 trillion considering the exchange rate at 74.9 (average of current fiscal year 2020-21; April-October). Sanjay Aggarwal said ‘Percolation of more and more economic reforms at the ground level with effective implementation would be crucial to attain the potential trajectory of $5 trillion in the next 6 financial years by FY 2026-27 (GDP at current prices; considering the exchange rate between 74-75).’
Aggarwal said recently, PHD Chamber on the basis of PHDCCI Economic and Business Momentum (EBM) Index, estimated that the GDP growth will be at around (-) 7.9% for the current financial year 2020-21 as compared with the median forecasts of (-) 9.3% by various national and international forecasting organizations. He noted that at this juncture, demand creation measures are needed to attain a positive growth trajectory sooner rather than later. He said that demand creation along with increased spending on infrastructure will have multiplier effects on the economic growth trajectory by boosting private investments, creating new employment opportunities in the country, generating demand for commodities such as steel, cement and power.