India is capable to double the size of its economy to USD 5 trillion by 2025, Subhash Chandra Garg, Economic affairs secretary said. He asserted that inflation target set by Reserve Bank of India is unlikely to breach amid concerns of the impact of a surge in oil prices and other factors driving up the inflation.
The country is expected to grow at 7-8 percent with greater focus on start-ups, MSMEs and infrastructure investment, Garg is positive that because of these factors economy might even expand at a higher rate.
Speaking at the CII Global Industry Associations Summit, Garg termed doubling the economy to USD 5 trillion as a reasonably set goal. Indian economy is currently the sixth largest in the world at USD 2.5 trillion.
Growth forecasts of the country for the current fiscal year is down from 2016-2017 growth of 7.1 percent to 6.6 percent, possibly due to the rollout of Goods and Sales Tax as the economy is still recovering from the effect of large-scale Currency demonetisation in 2016.
But the economy seems to be in the final stages of recovery with the wholesale price index-based inflation falling to a 7-month low of 2.48 percent and consumer based retail inflation to a 4-month low at 4.44 percent. On the inflation target, Garg said, "We have been extremely successful in adhering to that (inflation target) and going forward also, I don't see any major risk in not adhering to that."
"The macroeconomic factors, including inflation, I don't see any risk to our USD 5 trillion economy target. We have very stable inflation," Economic Affairs secretary said.