Economy IA recovering, but may take. Longer time than estimated!

India’s economy is on the mend after the pandemic-induced shocks but it may take “an additional year or so” to achieve the $5 trillion-mark, said Sanjeev Sanyal, Principal Economic Advisor to the Union Ministry of Finance, on Wednesday. He also said that – “The GDP growth rate is expected to be positive in the April-June quarter, Of course, disruptions will be there. We had set a target of becoming a $5 trillion economy by 2024-25. It may take an additional year or so to achieve this”.

The economy has started to recover rapidly after the second wave of the pandemic subsided, and the GDP growth rate is expected to be positive in the April-June quarter, he said. “If no major damage from the (possible) third wave of the pandemic is seen in the country and vaccination continues at the same pace, then you will see growth in the economy in the next three-four months,” Sanyal added.

When asked about the rise in fuel prices and getting it under purview of GST, he said it should be asked from GST council and not from him though he added – “However, I am of the opinion that this topic is not a matter of discussion at this point of time because the GST system has to be kept stable for some time”. The government is taking inflation seriously, but there was need to take cautious steps to control it as economic activities in the country have just been bouncing back after the second wave of the pandemic, Sanyal said

International rating agencies keep changing their growth forecasts about the Indian economy but there has been no change in the government’s stand, he said.

So in the end, it’s for the hope which we can put in, to get a better growth this year and coming years as well.

(Interview Credits – NDTV)

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