'Achieving $5tn economy target possible only by 2030'

By Animesh Singh

New Delhi, Nov 17 (IANS): Owing to volatile geopolitical situations arising due to the Ukraine crisis, rising inflation and after-effects of the coronavirus pandemic, achieving the target of making India a $5 trillion dollar economy by 2024-25 looks difficult and may only be possible by 2030 at the current GDP growth rate, top banking industry representatives have said.

Representatives of leading public sector banks are learnt to have indicated this to the high level Parliamentary standing committee on finance.

According to sources privy to developments, representatives of top public sector banks like State Bank of India (SBI), Punjab National Bank (PNB) and Union Bank of India in a recent meeting with the Parliamentary panel, held on the subject of "Global and Indian Economy and Roadmap for $5 trillion Indian Economy" and performance review of banking sector including Insolvency and Bankruptcy Code (IBC) operations, are said to have indicated that at the current GDP rate of around 6.4 per cent, it would not be possible to make India a $5 trillion economy by 2024-25.

At the existing growth rate, the target may only be achieved by 2030.

The banks' officials are learnt to have told the Parliamentary panel that around 10 per cent GDP growth is needed to achieve the $5 trillion dollar economy target before 2030.

However considering the prevailing global economic situation, this growth rate does not look possible, the banks' officials are learnt to have said.

Sources quoting banks' officials, further informed that even the recovery of non performing assets (NPAs) in the last six years since the inception of the Insolvency and Bankruptcy Code (IBC), has only been 30 per cent, which is not satisfactory.

Only if the banking industry improves, will the $5 trillion economy target be achieved, they are learnt to have informed the committee.

The projections made by the banking industry before the Parliamentary panel may come as a setback for the government, which normally aims to achieve targets before deadlines.

The Centre had set a target of achieving 20 per cent ethanol blending in petrol by 2030, which it is now on course of achieving by 2025-26.

In 2019, Prime Minister Narendra Modi had envisioned making India a $5 trillion economy and global powerhouse by 2024-25.

However going by the projections made by the banking industry and looking at the prevailing global scenario, the deadline appears a bit too ambitious.



Top Stories

Comment on this article

  • Daniel, Mangalore

    Fri, Nov 18 2022

    Western Big banker liberal elite, World Economic Forum and communist china behind this long wars and covid to deplete tax payers money to their pockets through war weaponry mafia, vaccine mafia, technology mafia to slowly bankrupt many nations economically then their unpayable huge iMF, WB loans and control the whole world. Common man and normal rich suffering these billionaires ruining the economy for their gain, much depopulation for better high tech control like in communist china worldwide.

    DisAgree Agree [1] Reply Report Abuse

  • Dylan, Mangalore

    Thu, Nov 17 2022

    When we reach 2030 change will be to 2035 it will go on. It is only a distant dream.

    DisAgree [1] Agree [7] Reply Report Abuse

Leave a Comment

Title: 'Achieving $5tn economy target possible only by 2030'

You have 2000 characters left.


Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.