India to become third largest economy with USD 5 trillion GDP in three years: Finance Ministry

India is projected to become the world’s third-largest economy, reaching a GDP of USD 5 trillion in the subsequent three years and aiming for USD 7 trillion by 2030, in accordance to the Finance Ministry.

A decade in the past, India was the tenth largest economy with a GDP of USD 1.9 trillion, but it surely now stands because the fifth largest at USD 3.7 trillion, regardless of challenges just like the pandemic and financial imbalances.

“This ten-year journey is marked by several reforms, both substantive and incremental, that have significantly contributed to the country’s economic progress,” it stated.

The ministry attributes this progress to substantial and incremental reforms which have enhanced financial resilience. The authorities goals to obtain developed nation standing by 2047, emphasising the necessity for state governments’ full participation in purposeful and fruitful reforms at varied ranges.

“The government has, however, set a higher goal of becoming a ‘developed country’ by 2047. With the journey of reforms continuing, this goal is achievable,” it stated.

The evaluation highlights the power of home demand contributing to a 7 per cent plus progress fee in latest years, with potential for progress nicely above 7 per cent by 2030.

“The strength of the domestic demand has driven the economy to a 7 per cent plus growth rate in the last three years…in FY25, real GDP growth will likely be closer to 7 per cent,” stated the evaluation report, and added there’s, nonetheless, appreciable scope for the expansion fee to rise nicely above 7 per cent by 2030.

“Furthermore, under a reasonable set of assumptions with respect to the inflation differentials and the exchange rate, India can aspire to become a USD 7 trillion economy in the next six to seven years (by 2030),” it stated.

The report highlighted the significance of the monetary sector and structural reforms, expressing considerations solely about geopolitical dangers. The Chief Economic Adviser notes the unprecedented infrastructure improvement and public sector capital funding improve whereas acknowledging world financial challenges in sustaining restoration post-COVID.

(With PTI inputs)

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