A Journey towards the $5 Trillion Indian Economy after Pandemic

Abstract

The Indian economy is developing as a market economy at a positive pace having the third-largest purchasing power and 6 th largest economy in respect of nominal GDP in the year 2021-22. and the long future-term growth prospects of the Indian economy remain positive the reason is its young population and low dependency ratio. With US$ 77.47 billion in the third quarter of FY22 in the manufacturing current GVA at price2 , India stands at 6th position in the world. The growth rate of India in 2020 which is the fourth fiscal year, India went down to 3.1%. and this is due to the coronavirus pandemic apart from it. India has witnessed a preCovid-19 slowdown according to World Bank. World Bank revised India’s growth rate with the lowest figures for the year 2021. The outbreak of Covid-19 had put lots of challenges in front of every economy, apart from millions of positive cases and lacs of deaths. It pushed every nation towards an economic slowdown. In the post-COVID era, we witnessed a high rate of unemployment with a fall in national average income. As per National Statistics Office (NSO), the minister stated that the Indian economy is fully recovered from the pre-pandemic GDP level for the years 2019-2020. The real GDP growth of India in the year 2021-22 is 8.7% which is 1.5% higher than the real GDP of the pre-pandemic year. Will India become a $5 trillion economy in 2025? This is the important question and there are two opposite outlooks optimistic and pessimistic. Therefore, through this study, the researcher is trying to determine the impacts of Covid-19 on the vision of a $5 trillion economy. If India wants to be a $5 trillion economy, then India must have almost doubled its size because India’s current economy is $3.1 trillion and India can only achieve its aspirational goal if it sustains the growth rate of 9% per annum3 . For this research paper, the data is going to be gathered from both primary and secondary data and a questionnaire will be framed to know about the impacts of this pandemic on the vision of India it will also help to know whether India will achieve its vision and up to when?