India may have to ‘work hard’ to achieve a five percent growth in gross domestic product (GDP) in 2020. This is said by the famous American economist Steve Hanke. He said that in the last few quarters, the economic growth rate has declined significantly.The main reason for this is the reduction in debt, which is a cyclical problem. He said that there has been a sharp increase in credit growth in India during the last few years, but today the situation is that non-performing assets (NPAs) are increasing. Submerged debt, especially of public sector banks, is increasing.Hanke said, “Debt contraction is the cause of lethargy in India, which is a cyclical problem.
India may have to ‘work hard’ to achieve a five percent growth in gross domestic product (GDP) in 2020.
Hanke said that India is already surrounded by a lot of protectionism. India was yet to be counted as the fastest growing economy in the world.The country’s economic growth rate has come down to 4.5 percent in the September quarter of the current financial year, which is its six-year low. He said that the Narendra Modi government has failed to pursue major economic reforms. Questioning the Modi government, Hanke said that there is no interest in the rigorous and necessary economic reforms of the Modi government. Instead, the Modi government is focusing on two things… religion and caste… instability and potentially explosive issues.