PM Modi meets top economists ahead of Budget, discusses ways to make India a 5 trillion dollar economy by 2024

In view of low GDP and current economic slowdown, Prime Minister Narendra Modi today held a high level meeting with the top economists of the country in Niti Aayog to seek their advice and suggestions to overcome the challenges before union budget to be announced on Feb 1. He also discussed ways to make India a 5 trillion dollar economy by 2023-24. Home Minister Amit Shah, Niti Aayog CEO Amitabh Kant and Vice Chairman Rajiv Kumar along with road and transport minister Nitin Gadakari and some market experts were also present in the meeting.

According to sources, Modi asked the economists and market experts to review the current government policies and if there is any lag in them then he assured that the government would take appropriate measures to align them as per the current economic situation. The economists in return advised Modi to not got for income tax but rather opt for increasing expenditure in the rural sector to stimulate demand in the economy.

"The government should not think of maintaining its fiscal deficit target. Rather it should increase its public expenditure so that demand could be stimulated in the economy. Increasing rural expenditure than opting for income tax cut in the budget would be a better idea," one of the economists told who didn't wish to be quoted.

According to the government's official statement, sectors like urban development, agri-based industry and infrastructure have great potential in creating employment and taking Indian economy forward. 

Reasons

The meeting holds significance in view of current economic slowdown. The government has also lowered its forecast for GDP growth rate to 5 percent from the earlier projection of 7 percent for the current year. 

Modi had recently held a meeting with top industrialists also to solicit suggestions for employment generation and overcoming the current economic challenges. Business tycoons including Ratan Tata, Mukesh Ambani and Sunil Bharti Mittal had attended the meeting. Modi has also been holding sectoral meetings with the council of ministers to review their performance in the last six months and their action plan for the next five years.