New Delhi: The coronavirus pandemic has derailed economies across the world and left thousands jobless amid financial instability. The second wave affected India much more than the first due to inadequate health infrastructure as compared to developed countries.
According to former Chief Economic Adviser Arvind Virmani, “India will take a little longer than the projected target to make the Indian economy a $5 trillion economy mainly due to the impact of the Corona pandemic.” In a conversation with ABP News, Virmani gave his opinion about the current state of the Indian economy and its prospects.
India’s economy is slowly recovering from the impact of the coronavirus and Virmani believes that the goal of making the country’s economy of $5 trillion is definitely achievable. However, he acknowledged that the economy has certainly been hit due to the pandemic restrictions. As a result, there may be a delay of one to two years in achieving the target, he said. The Modi government has set a target of making India’s economy of $5 trillion size by 2024-25.
Will India be able to achieve its target?
Arvind Virmani, who was the government’s chief economic advisor in the first term of the Manmohan Singh government from 2007 to 2009, believes that the steps taken by the Modi government in its second term will help attract investments into the country. The passage of the Taxation Laws (Amendment) Bill in the monsoon session of Parliament that ended on August 11 is one such example in which retrospective tax has been abolished. After the bill was passed, the Income Tax Department in a tweet also mentioned 5 benefits of this bill, one of which was to help India become a 5 trillion dollar economy.
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