Outbreak of Covid Pandemic has put a lot of challenges in front of us. Apart from Millions of cases and Lacs of Deaths, it is pushing almost every nation towards Economic Slowdown.

Economic Slowdown in simple terms be construed as that an economy will not grow the same way it was growing earlier (Will Grow at less pace than earlier). Therefore, In Post Covid era we can witness high level of unemployment along with a fall in nation’s average income. 

Economic Slowdown in Indian Scenario:

IMF Projections: Recently, the International Monetary fund projected India’s Economic Growth at (-) 4.5% for Financial year 2020-21 & 6.0% for Financial year 2021-22. Indian Economy at present stood at around 2.94 Trillion Dollars. So considering the above projections Indian economy will have to grow by 18.85% in financial year 2022-23 to 2024-25 as computed below:

Particulars of Indian Economy GDP in Trillion Dollars Growth Percentage Required/Projected Cumulative GDP in Trillion Dollars (after Growth Factor)
Base Year (2019-2020) 2.94 2.94
For 2020-21 2.94 (-) 4.5%** 2.81
For 2021-22 2.81 6%** 2.98
For 2022-23 2.98 18.85% 3.54
For 2023-24 3.54 18.85% 4.21
For 2024-25 4.21 18.85% 5.01

** IMF Projections for Indian Economy

Can this target be achieved?

Recently, in order to revive Indian Economy and to achieve the target of Five Trillion Dollars economy by 2024-25, Prime Minister of India Sh. Narender Modi ji gave us a concept of Self Reliant India followed by Aatma Nirbhar Bharat Package announced by Smt. Nirmala Sitharaman ji (Union Finance Minister). Through this Package an attempt is made to Promote and Strengthen Local and Made in India Products. The Package if successfully implemented can bring Indian economy back on track. Further, as we know, India is having huge number of unorganised groups who need someone to lead. The vision of self-reliant India cannot be achieved until and unless Government itself is taking initiatives. Merely leaving it at the citizens will not work.

How Self Reliant India Mission can help in achieving the Five Trillion Dollars Economy Target?

The Concept of Self Reliant India can be summarised in just two words that are “Be Independent”. The main aim is to fulfil the demand by ourselves. Promoting Local Products over Foreign Products may help in attracting new businesses to setup their manufacturing units. The more production they will make the more Indian Economy will strengthen.

Tax Incentives: As we know that tax incentives are given to startups, the same concept can be advanced to other forms of organisations also for first two years so that they can reach their breakeven point or may strengthen their supply chain and Customer networks.

Conclusion:

Yes, India can still achieve the target of Five Trillion Dollars Economy by 2024-25, but neither Government nor Citizens alone can achieve this target. It has to be Government-Citizens Partnership.

Author Bio

Qualification: Student - CA/CS/CMA
Company: Legal-N-Tax Advisory LLP
Location: New Delhi, IN
Member Since: 14 Jul 2020 | Total Posts: 2
Experienced Senior Tax Associate with a demonstrated history of working in the legal services industry. Skilled in Tax Litigation, Transfer Pricing, Legal Writing, Leadership, Team Management and Auditing. View Full Profile

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