Prime Minister Narendra Modi is confident that India is on the right track in achieving the target of USD 5 trillion economy in the future. PM Modi said that discussions on accomplishing the vision of making India a USD 5 trillion economy did not come so soon and at the same time, asserted that the country strengthened itself in the last five years to fulfil such goals.
“Talks on 5 trillion dollar economy have not come all of a sudden. Our country has strengthened itself so much in the last five years that we can aim to achieve such goals,” PM Narendra Modi said while addressing the inaugural session of ‘100 years of ASSOCHAM’.
Nonetheless, the recent reports of global rating agency suggesting a slowdown in the country’s GDP (Gross Domestic Product) show that there is plenty of work needs to be done to prevent this slide.
On Friday, global rating agency Fitch Ratings lowered India’s economic growth forecast to 4.6 per cent in 2019-20 owing to domestic factors. “Our outlook on India’s GDP growth is still solid against that of our peers, even though growth has decelerated significantly over the past few quarters, mainly due to domestic factors, in particular, a squeeze in credit availability from NBFCs and deterioration in business and consumer confidence,” the Fitch report added.
“Fitch expects growth to slow to 4.6 per cent in the financial year ending March 2020 (FY20), from 6.8 per cent in FY19, which is still higher than the ‘BBB’ median of 2.8 per cent. We expect growth to gradually recover to 5.6 per cent in FY21 and 6.5 per cent in FY22 with support from easing monetary and fiscal policy and structural measures that may also support growth over the medium term,” it said.
Last month, the country’s second quarter GDP growth gradually declined to 4.5 per cent, which is the weakest pace in more than six years, as manufacturing output hit new low consumer demand and private investment went from bad to worse.