AHMEDABAD: Although the state government recently formed a high-level task force under former Union finance secretary Hasmukh Adhia, to prepare an action plan for corrective action to enhance Gujarat’s economic contribution to achieve PM Narendra Modi’s aim of a $5 trillion Indian economy by 2024, the state’s GSDP (gross state domestic product) will have to increase its growth rate by 25% per year.
However, state finance minister Kanu Desai projected GSDP growth of 13% in his budget speech on Thursday.
Desai said, “The state is expected to register an impressive double-digit GSDP growth of 13%, despite the adverse impact of the Covid pandemic. ”
Gujarat’s present share of India’s GDP is 8%.
To match this share towards the country reaching a $5trillion economy, Gujarat will have to achieve GSDP of Rs 27. 5 lakh crore from the present GSDP of Rs 16. 5 lakh crore in two years. According to budget estimates, GSDP for 2021-22 has been Rs 18. 7 lakh crore, for 22-23 it will have to be Rs 21. 3 lakh crore and Rs 24. 1 lakh crore for 23-24.
To incorporate the Adhia committee’s suggestion for GSDP quantum leap, the Gujarat government will have to revise all budgetary projections, which is also a major challenge due to several factors.
However, state finance minister Kanu Desai projected GSDP growth of 13% in his budget speech on Thursday.
Desai said, “The state is expected to register an impressive double-digit GSDP growth of 13%, despite the adverse impact of the Covid pandemic. ”
Gujarat’s present share of India’s GDP is 8%.
To match this share towards the country reaching a $5trillion economy, Gujarat will have to achieve GSDP of Rs 27. 5 lakh crore from the present GSDP of Rs 16. 5 lakh crore in two years. According to budget estimates, GSDP for 2021-22 has been Rs 18. 7 lakh crore, for 22-23 it will have to be Rs 21. 3 lakh crore and Rs 24. 1 lakh crore for 23-24.
To incorporate the Adhia committee’s suggestion for GSDP quantum leap, the Gujarat government will have to revise all budgetary projections, which is also a major challenge due to several factors.