1 year, 11 months ago
6.5% growth with sub-5% inflation key to $5 trillion economy: Govt paper
Hindustan TimesAn annual economic growth of 6.5% with inflation less than 5% for the next five years holds the key for the central government’s ambitious target of making India a $5 trillion economy, according to a background paper circulated among a select group of lawmakers. “India is likely to become a US$ 5 trillion economy by 2026-27 if it grows at an average annual rate of 6.5% with inflation below 5.0% and US inflation closer to 3%,” it said. The IMF has assumed the US’s average annual inflation rate at 2.3% during the next five years,” the background paper said. It would be “quite possible that US inflation rates will average more than 2.3% in the next five years” as it happened in the 60s and 70s, the background paper said.
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