of India Gross Domestic Product (GDP) is expected to grow by nine per cent in the financial year 2021-22, the highest among major economies, and Growth According to the PHD Chamber of Commerce and Industry, it is likely to be more than eight per cent in the current financial year. “India’s growth trajectory in 2022-23 is expected to remain stable, supported by various dynamic reforms undertaken by the government during the last two years,” Pradeep Multani, President, PHD Chamber of Commerce and Industry said in a statement on Monday.
He said geopolitical conflicts are among the major worrying factors in 2022-23, high inflation And the renewed coronavirus variant. “At this juncture, the impact of ease of doing business at the factory level will go a long way in increasing the size of the economy to USD 5 trillion by 2026-27.”
Industry body PHDCCI in its report, titled ‘Economy to restart normal growth curve in 2022-23’ envisages nominal GDP growth of 12-12.5 per cent (8 per cent real GDP and 4-4.5 per cent inflation). rate will increase. The current fiscal year and the economy will attain a size of USD 3,350-3,400 billion in 2022-23.”
The size of the economy is expected to reach US$ 5 trillion by 2026-27, the report said, adding that agriculture and food processing sector has emerged as one of the most prominent sectors to achieve the target. “The sector is making promising developments in both production and exports.”
The report said that nominal GDP is expected to grow by over 12 percent (average) over the next five years. However, the inflationary outlook, especially the rise in crude oil prices, has led to an increase in international commodity prices.
Multani said the Indian economy is expected to remain resilient despite geopolitical conflicts, which is likely to reduce world GDP growth by 0.5 percentage points. This is due to the “inherent strengths, strong economic fundamentals and promising areas of growth” of the Indian economy.
The industry body has suggested a 10-long strategy to spur economic growth and achieve USD 5 trillion in the next five years by 2026-27.
Fueling consumption demand will have a manifold impact on production prospects, private investment and job creation, the report said. “The accommodative policy stance should be continued by the RBI to drive growth till it becomes more robust and sustainable.”
It added that rapid infrastructure investment gives a multiplier effect and robust infrastructure development is a key component of realizing the vision of becoming Atmanirbhar Bharat.
“PLI scheme will be more robust – more and more areas should be covered under PLI scheme. The PLI scheme will have to play a key role in accelerating domestic manufacturing capabilities and strengthening economies of scale.”
The equal opportunity sector for Indian industry should be focused on the competitiveness of enterprises. Free trade agreements should be viewed in the context of market access opportunities in destination economies.
It said the economy should be supported with continuous reforms for businesses, especially MSMEs and agriculture sectors.
It also urged the government to increase public investment in the agriculture sector, address high commodity prices and raw material shortages, reduce the cost of doing business, and reduce petty crimes.
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