InvestorQ : Now that India is recovering in GDP terms, when do you think India can look to reach $5 trillion in GDP?
Anu Biswas made post

Now that India is recovering in GDP terms, when do you think India can look to reach $5 trillion in GDP?

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Ria Jain answered.
1 month ago
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A recent report by EY (Ernst & Young) India has stated that India’s dreams of reaching $5 trillion GDP level may have to be back-ended or extended by a few years. EY has pointed out that after the 2 lost years during COVID-19, reaching the $5 trillion GDP mark by 2025 may sound largely unrealistic. According to EY India, that target may have to be now extended to around 2028 which is a more realistic target date to achieve $5 trillion economy.

EY India has relied on IMF’s macro projections presented recently for their analysis. EY has assumed an average sustainable GDP growth rate of 6% annualized in the medium term. However, EY has pointed that if median GDP growth ended 1% lower, the target would get extended to 2030. To catalyse growth, EY has called for ramping up public sector investment to boost the investment rate. The Investment rate in India has fallen from 39.8% to 29.3% over last 10 years.

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