India received a major economic boost ahead of the Union Budget 2024 presentation, with the Finance Ministry’s review report estimating 7% GDP growth for FY 2025 and the country becoming the world’s 3rd largest economy with $5 trillion GDP over the next 3 years.
The report titled “Indian Economy: A Review” highlights the robust economic growth witnessed over the past decade – from being the 10th largest $1.9 trillion economy in 2014 to the 5th largest $3.7 trillion economy currently, despite the pandemic’s impact. It credits structural reforms across sectors for this impressive progress.
Setting its sight on becoming a developed nation by 2047, the government aims to sustain 7%+ GDP growth in the medium-term, with the economy potentially touching $7 trillion by 2030 on the back of rapid infra development and reforms.
Belying global headwinds, India’s growth story to charge ahead
Even as the world economy struggles to sustain post-Covid recovery due to repeated shocks, India’s growth trajectory seems set to chart a unique course. With Govt massively stepping up investment in infrastructure to a record ₹18.6 lakh cr in FY2024 from ₹5.6 lakh cr in FY2015, the stage is set for rapid, yet sustainable long-term growth.
Plus, further reforms announced in recent months across agriculture, manufacturing, taxation, banking, infrastructure & employment will likely bolster productivity, raise per capita income and make growth more inclusive.
According to Chief Economic Adviser Dr V Anantha Nageswaran, if FY2025’s projected 7% growth materializes, it will mark the 4th straight year of 7%+ growth since the pandemic – making India a vital engine of global growth.
With sound macroeconomic fundamentals, bolstered by the astute policy response, India seems well placed to power ahead even as the world contends with a downturn.
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Vision to be a leading global growth center
The review report aligns with the government’s vision of establishing India as a leading growth center within the emerging global order.
Backed by a young population and rapid urbanization, a $5 trillion Indian economy by 2025 could make the country the fulcrum of global economic growth.
By sustaining robust, yet sustainable growth in the long run, India aims to lift millions out of poverty and boost per capita income to developed country levels. The goal – make the 21st century, the Indian century!