InvestorQ : Is India still on track to become $5 trillion economy by the year 2025?
ishika Banerjee made post

Is India still on track to become $5 trillion economy by the year 2025?

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Anamika Sodhani answered.
4 months ago
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Increasingly, economists are expressing scepticism about the target of becoming a $5 trillion economy by 2025, with the latest statement coming from a professor at MIT. According to experts at MIT, the pandemic and aftermath have raised a serious question mark over India’s goal of becoming $5 trillion economy by 2025. That is because, India’s economy would still be smaller in the year 2021 compared to the pre COVID period of 2019, hinting at about 3 lost years in the growth process.

There is a more immediate concern. De-growth in India has been sharper, deeper and more structural compared to other emerging markets or even the developed nations. Currently, India’s GDP stands at around $2.6 trillion so becoming $5 trillion would be outright impossible at this stage. Instead, a more reasonable estimate looks like India may take 7-8 years of normalized growth for $5 trillion and perhaps reach the target by 2028 or 2029.

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