India's Real GDP to Touch $2.5 Trillion by 2021: PHD Chamber
Monday, 09 January 2012, 15:47 IST
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NEW DELHI: India's real GDP is expected to touch $2.5 trillion by 2021 as the country's macroeconomic fundamentals, like savings, investments and per capita income, are growing strong, a study said. At present, the country's real GDP amounts to $1 trillion. Industry body PHDCCI -- in its study, 'Growth Prospects of Indian Economy: Vision 2021, Trillion Dollar Growth Opportunities' -- said India's real per capita income is estimated to double from the current level of $900 to $1,800 by 2021. "The strong macroeconomic fundamentals of India, like savings, investments and per capita income, are growing strong and would drive the growth prospects," it said. Notwithstanding that real GDP growth is expected to moderate in the near-term to around 7.4-7.7 percent in 2011-12, it is projected to enter a higher growth trajectory in the next few years, it said. The real GDP is estimated to achieve an average growth of 9.3 percent in the next 10 years by 2021, it added. Despite the fact that the slowdown in advanced economies, coupled with domestic economic challenges like high inflation and borrowing costs, have pulled down the growth momentum in the near-term, India has emerged a leading economy in the world economic system, PHD Chamber President Sandip Somany said. The study also said average WPI inflation is projected to remain within the 5-6 percent trajectory, while the gross fiscal deficit is estimated to remain within 3-4 percent of the GDP by 2021. India's exports of goods and services are projected to expand to $1,500 billion by 2021, while the average current account deficit would be less than 1 percent of the GDP. Furthermore, the country's demographic dividend would place it among the fast moving economies in the global economic order. The infrastructure sector has a huge untapped potential and will be the main driving force for higher economic growth, it said, adding that India will be spending around 9-10 percent of its GDP on the sector during the 12th Plan. In addition, it said developments in the global economy over the past few months are a matter of serious concern.
Source: PTI
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