India needs to sustain 9% growth for 5 years to become $5 trillion economy: EY report
To achieve the ambitious goal of Prime Minister Narendra Modi’s $ 5 trillion economy, it has to achieve 9 percent growth for five consecutive years. At the same time, the total rate of investment has to be reached at 38 percent of the gross domestic product (GDP). Ernst and Young said this in the latest edition of ‘Economy Watch’.
EY said that if India gets a growth rate of seven percent in the fiscal year ending March 31, 2020, then the size of the country’s economy will increase to $ 3 trillion, which is currently $ 2,700 billion.
EY said that if the Indian economy achieves a growth rate of 9 percent for five consecutive years, the size of the Indian economy will grow to $ 3,300 billion in 2020-21. It will reach $ 3,600 billion in 2021-22, $ 4,100 billion in 2022-23, $ 4,500 billion in 2023-24 and $ 5,000 billion or $ 5 trillion in 2024-25.
The report says that if the rate of inflation is four percent, then by the year 2024-25, to increase the size of the economy of the country to $ 5,000 billion, the growth rate of 9 percent will be needed.
The report says that to bring the growth rate to 9% in 2020-21, the investment rate will need to be brought to 38% of GDP, which is 31.3% in 2018-19. The gross investment rate was 31.3 percent in the financial year 2018-19 and the actual growth rate of 6.8 percent was achieved on it.
The highest investment rate of 39.6 percent was achieved in India in 2011-12. Total investment includes public investment, domestic investment and private sector investment.
Foreign investors withdraw over 2800 crore rupees from share market
In the first two sessions of August due to declining market on global and domestic front, Foreign Portfolio Investors (FPI) has made a net outflow of Rs 2,881 crore from the Indian capital market. According to the latest figures of depository, foreign investors took out Rs 2,632.58 crore from the stock market during the period of August 1 and withdrawing Rs 248.52 crore from the loan or bond market. Thus, they sold a total net worth of Rs 2,881.10 crore.
Earlier, FPI had withdrawn Rs 2,985.88 crore from the Indian capital market (both shares and bonds) between July 1-31.
