India’s Treasury Department has estimated that the nation could achieve the rank of the world’s third-largest economy by 2027, with a gross domestic product (GDP) of $5 trillion. This declaration precedes the upcoming release of the provisional budget later this week.
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As per the report unveiled on Monday, the Indian economy is anticipated to expand at or above 7% in the fiscal year 2024. If this objective is attained, it would signify the third consecutive year of 7% GDP growth for India. Currently, India’s GDP stands at $3.7 trillion.
V Anantha Nageswaran, India’s principal economic consultant, credited the strength in local demand to the reforms and measures enacted by the government over the past decade. He emphasized that investment in physical and digital infrastructure has been pivotal in enhancing the supply side and manufacturing sectors.
Ministry of Finance expects 7% GDP expansion for FY 2023-24, showcasing India’s economic strength. Modi’s leadership drives positive results. #BudgetSession #PMModi pic.twitter.com/KXKBT6MgLH
— Balkishan Bajpayee (@Callme_Balkish) January 31, 2024
Nageswaran also conveyed hopefulness regarding India’s future, stating that fiscal year 2025 is likely to witness “real GDP growth closer to 7 percent.”
The report emphasized that the document disclosed on Monday was not the Economic Survey of India, which is formulated by the Department of Economic Affairs prior to the Union Budget. The Union Budget, slated to be unveiled after the general election between April and May, will ensue the provisional budget presented by Finance Minister Nirmala Sitharaman on Thursday. The provisional budget is not expected to encompass significant alterations to expenditure or tax policies.
Goldman Sachs predicts that India could ascend to the position of the world’s second-largest economy by 2075, surpassing not only Japan and Germany, but also the United States. Presently, India stands as the world’s fifth-largest economy, trailing behind the U.S., China, Japan, and Germany.
In terms of market performance, India’s stocks have demonstrated an encouraging trend, with the Nifty 50 index climbing by more than 20% in 2023 and breaching the 22,000 level this month. Investors are upbeat about India’s growth prospects, anticipating continued policy consistency and potential interest rate cuts by the Reserve Bank of India later this year.
Photo Credit: Shutterstock / Ronnie Chua
