Economy is doing well, may hit $5 trillion target by 2025-26: officials

India could achieve the goal of becoming a $5 trillion economy by 2025-2026 despite prevailing global headwinds, senior officials told a parliamentary panel on finance on Monday.

The officials further said that although the geopolitical situation is very volatile due to the Russia-Ukraine war, the Indian economy is doing well and at the current growth rate of 6.4 percent, it could become a of 5 trillion dollars by 2025. -26, said sources familiar with the events.

The parliamentary standing committee on finance had convened senior government officials to get their views on the broader economic picture and the roadmap for a $5 trillion economy.

Economic Affairs Secretary Ajay Seth, Niti Aayog CEO Parameswaran Iyer and Chief Economic Advisor V. Ananth Nageswaran are known to have made presentations to the committee, giving projections on economic growth and the roadmap to becoming a $5 trillion economy, the sources reported. further away.

Finance Secretary TV Somanathan, who was also summoned by the panel, was unable to attend the meeting.

Sources reported that when the committee members asked the officials about the employment data, they were informed that in the urban centers, the employment scenario was satisfactory.

The parliament panel, headed by BJP Lok Sabha MP Jayant Sinha, also questioned officials on rising edible oil prices, capital spending and private investments in the country, the sources said.

The optimism about continued economic growth despite global uncertainties projected by top officials stood in stark contrast to the gloomy picture painted by representatives of three major public sector banks before the same panel last week.

Representatives of major public sector banks, namely State Bank of India (SBI), Punjab National Bank (PNB) and Union Bank of India, told the parliamentary standing committee on finance last week that due to volatile geopolitical situations , achieving the goal of making India a $5 trillion dollar economy by 2024-25 seems difficult and may only be possible by 2030 at the current GDP growth rate.

Bank officials are known to have told the panel that at the current GDP rate of around 6.4 per cent, it would not be possible to make India a $5 trillion economy by 2024-25 and at this rate, the target can only be achieved by 2030.

Prime Minister Narendra Modi had set himself the goal of making India a $5 trillion economy by 2024-25.

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