New Delhi: The coronavirus pandemic has derailed the economy worldwide leaving thousands of people jobless amid financial instability. The second wave impacted India much more than the first one due to inadequate health infrastructure as compared to developed nations.
“India will take a little longer than the estimated target to make the Indian economy a $5 trillion economy mainly due to the impact of corona epidemic, “ according to former Chief Economic Adviser Arvind Virmani. In a conversation with ABP News, Virmani gave his opinion about the current situation of the Indian economy and its prospects.
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India's economy is slowly recovering from the impact of coronavirus, and Virmani believes that the target of making the country's economy $5 trillion can be definitely achieved. However, he admitted that the economy has definitely taken a hit owing to pandemic restrictions. As a result, there may be a delay of one to two years in achieving the target, he stated. The Modi government has set a target of making India's economy a size of $5 trillion dollars by 2024-25.
Will India be able to achieve its target?
Arvind Virmani, who was the Chief Economic Advisor to the government in the first term of the Manmohan Singh government from 2007 to 2009, believes that the steps taken by the Modi government in its second term will help in attracting investment in the country. The passage of the Taxation Laws (Amendment) Bill in the monsoon session of Parliament that ended on August 11 is one such example in which Retrospective Tax has been abolished. After the bill was passed, the Income Tax Department had also mentioned 5 benefits of this bill in a tweet, one of which was to help India become a 5 trillion dollar economy.