As per the report provided by the World Bank, India has slipped to the seventh spot in 2018 global GDP rankings. The Asian country trails the United States, China, Japan, Germany, UK, and France in the list.
In 2017, India was on the fifth spot reporting a GDP of $2.65 trillion. Likewise, the country with the second-largest population reported a GDP of $2.73 trillion in 2018. The global analytical company CRISIL has cut GDP growth estimate to 6.9 percent from 7.1 percent for the fiscal year 2020. The reason for low estimate is due to the weak rainfall in June and the overall slowing global economic growth.
PM Narendra Modi has set the target to make India a 5 trillion economy within the next five years. But it only looks like an ambitious target. This is because if the country wants to reach somewhere near this mark, the economy must grow by 9 percent annually. On the other hand, British multinational consultant Ernst and Young reported that the country’s investment must account for 37 percent of the total GDP to achieve the target.
Similarly, to achieve the target in this period, the country’s inflation must not exceed 4 percent. Meanwhile, the price depreciation should not be more than 2 percent.