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India needs to accelerate economic growth to above 8% to achieve its target of becoming a $5-trillion economy by 2025, former State Bank of India chairman Rajnish Kumar said, news agency PTI reported

"If India wants to become a $5-trillion economy then obviously we can't be happy with a 5-6% GDP growth. We need to grow above 8%," Kumar said speaking at vitual event organised by the IMC Chamber of Commerce and Industry

Meanwhile, Ratings agency ICRA has recenlty maintained its forecast of a 9% GDP expansion in FY22, with a clear K-shaped divergence amongst the formal and informal sectors of the economy. The ratings agency also expect the economy to maintain a similar 9% growth in FY23, while Wall Street Brokerage Bank of America expects India's GDP to grow at 8.2% in the next financial year, citing greater risks in the new year than the previous two years.

On the other hand, Reserve Bank of India (RBI) has projected a GDP growth rate of 9.5% for the current financial year with inflation seen at 5.3%.

The economists in a report have projected an average retail inflation at 5.6% in FY23, saying higher consumer prices could turn out to be a key macro concern for all as global commodity prices remain high.

Indian economy has gained momentum during the July-September period, inching gradually back to normalcy as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave.

GDP for the second quarter of the financial year grew by 8.4% from a year ago, one of the fastest rates among major economies, data released by the government showed on Tuesday.

After being hit by a devastating surge in virus cases stoked by Delta variant earlier this year, the situation in India has improved in recent months.

However, with the emergence of the Omicron variant, the economy is not yet out of the woods as the new heavily mutated variant could easily wreck havoc.

S&P Global Ratings has kept India's economic growth forecast in the fiscal year to March 2022 unchanged at 9.5% but raised its predictions for the subsequent year on broadening out of the recovery.

According to Kumar, there is a willingness to take tough decisions and initiate tough reforms at the central government level but when it comes to execution, there are issues due to bureaucracy.

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