Page 143 - Abhivruddhi

Introduction
The economic development of any country depends on the natural
resources, capital formation and the size of the market. The overall
economic growth is inclusive growth which gives opportunities to all and
fairly distribute resources across society.
In the year 2019 Prime Minister Narendra Modi envisioned making
India a USD 5 trillion economy and a global economic powerhouse
by 2024-25. Though pandemic has posed challenges and affected the
economic growth for the period of two years but Indian economy has
shown resilience and took the road to recovery swiftly. The current macro-
economic situation showing positivity considering the economic growth
rate as well as India’s growing Foreign exchange reserve. India’s economy
which is Asia’s third largest economy has shown remarkable growth in the
past years and now the projection of growth rate is 8.9 percent in the FY
2022. The Indian economic growth rate pegged by the Reserve Bank of
India for 2022-23 is at 7.8 percent. The National Statistical Organization
(NSO) stated that the improvement in the performance of the agriculture
and the manufacturing sectors, India’s economy is estimated to grow at
faster rate, in comparison to contraction of 7.3 per cent in 2020-21, the
growth in real GDP during 2021-22 is estimated at 9.2 percent. According
to NSO “The real GDP or GDP at Constant Prices (2011-12) in the year
2021-22 is estimated at Rs. 147.54 trillion, as against the Provisional
Estimate of GDP for the year 2020-21 of Rs. 135.13 trillion, released on
31st May, 2021. Real GVA at Basic Prices is estimated at Rs. 135.22 trillion
in 2021-22, as against Rs 124.53 trillion in 2020-21, showing a growth of
8.6 per cent.
In the support of the vision of USD 5 trillion Indian economy by 2025,
the former Chairman Ajay Tyagi of the Securities and Exchange Board of
India (SEBI) once said that raising of funds was crucial for making India a
$5 trillion economy. He opined that the vigorous growth in financial sector
has capacity to continuously supply effective resources and efficiently
allocate the same, this is crucial to create savings and investment cycle.
Mutual Fund
SEBI defined Mutual fund as a mechanism for pooling the resources
by issuing units to the investors and investing funds in securities in
accordance with objectives as disclosed in offer document. In mutual
fund the Investments in made in variety of securities and are spread
across a wide cross-section of industries and sectors. The diversification
of portfolio reduces the risk as all securities/stocks may not move in

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