Risk of poor investment due to lax policy by bureaucrats

India's GDP to cross $3.5 trillion: Moody's

New Delhi: In 2018, Prime Minister Narendra Modi called for policies to be formulated for a five lakh crore dollar economy. However, the impact of the corona epidemic and lockdown on the economy was seen on the chances of the economy achieving this achievement by 2025. Now, according to the report of the credit rating agency Moody's, the size of the Indian economy or GDP has crossed 3.5 trillion dollars in the calendar year 2022, which has been released today.

Moody's said that among the leading G20 nations, India will remain the fastest growing country for several years but economic reforms and policy constraints may impact investment in the country. Moody's said bureaucracy is delaying getting the necessary licenses to start the business, increasing the time to start the project.

'Investment attractiveness in India is declining due to India's bureaucracy in foreign direct investment. Vietnam has higher delays in India than other countries in its region, Moody's said. Demand for houses, cement and new vehicles will remain high in the country due to urbanization, increase in the number of educated and young workers, family fragmentation. Demand for cement and steel will also increase due to government infrastructure investment. Over the next decade, the growth of infrastructure and manufacturing sector will increase by 3 to 12, but India's capacity will remain lower than that of China even till 2030.

Slow implementation of policy decisions and lax policy of economic liberalization in India risks undermining investment and manufacturing growth potential in India.