India may attain its fastest growth trajectory beginning fiscal 2021-22, according to PHD Chamber of Commerce and Industry president Sanjay Aggarwal, who recently said the size of the economy will rise from ₹203 trillion in fiscal 2019-20 to ₹331 trillion in 2025-26 at current prices, which will be around $ 4.42 trillion considering exchange rate at 74.9.
"The average GDP growth of Indian economy in next five years from 2021 to 2025 will be at 7.8 per cent, highest as compared with top 10 economies including 6.2 per cent of China, 3 per cent of France, 2.9 per cent of United Kingdom, 2.9 per cent of Canada, 2.4 of United States, 2.3 per cent of Germany, 2.3 per cent of Italy, 2.3 per cent of Brazil and 1.4 per cent of Japan," Aggarwal was quoted as saying in a statement.
In a recent growth estimate by the International Monetary Fund (IMF), India is projected to become the fastest growing economy among the top 10 major economies in the world economic system from 2021 to 2025.
Besides, the percolation of more and more economic reforms at the ground level with effective implementation would be crucial to attaining the potential trajectory of $5 trillion in the next six fiscals, the industry body pointed out.
"On the back of various reforms undertaken by the government, economic recovery has become visible in the high frequency economic and business indicators of the recent months," he said.
The recent PHDCCI economic and business momentum (EBM) Index estimated that the gross domestic product growth will be at around minus 7.9 per cent for this fiscal compared with the median forecasts of minus 9.3 per cent by various national and international forecasting bodies.
"At this juncture, demand creation measures are needed to attain a positive growth trajectory sooner rather than later," Aggarwal said.
"Demand creation along with increased spending on infrastructure will have multiplier effects on the economic growth trajectory by boosting private investments, creating new employment opportunities in the country, generating demand for commodities such as steel, cement and power," he added.