There are many pace breakers on the way to a $5 trillion economy by 2025, the NITI Aayog warned the state.
Next, the think tank stated nominal GDP growth— a calculation of growth minus inflation— must be at least 12.4 percent on aggregate if that target is to be achieved during the first half of the current financial year, the current rate was only 8 percent.
It is estimated that the government will release information later in the month for the second quarter (July to September). Estimated that growth will fall in actual and nominal terms in Q2 relative to Q1. e.g, although GDP growth in Q1 was 5 percent in real terms, India's state-run lender bank recently forecast that this could decline to 4.2 percent in Q2, with a subsequent decline in nominal growth as well. In its estimate, actual GDP growth accounted for inflation.
In his speech, Mr. Kant said that "domestic investment and demand" are the only viable engines of[ the economy's] sustained recovery."Nonetheless, there is a deceleration in spending, especially in the household market, owing almost exclusively to real estate," he added.
The domestic market downturn is also attributed to the limited availability of equity with banks that are tied down due to high unstable wealth in heavy industry and infrastructure, Mr. Kant said.
As an example of the "structural changes" that Ms. Sitharaman had indicated in her budget speech, Mr. Kant proposed that a strong cross-subsidization in favor of residential tariffs would result in very high industrial tariffs in the power sector.
In India, the loss in electric power transmission and distribution (T&D) are 19 percentage points higher than those in Bangladesh and Vietnam.
Since 2017 forward, as per the report, there has been a steep decline in textile exports. Several financial experts criticized the decline in the decision of November 2016 to demonize high-value currency that emptied essential liquidity from the cash-dependent textile market.
Tags : NITI Aayog, domestic investment, domestic market, structural changes, electric power transmission and distribution,