Ira Singh
Khabar Khabaron Ki,30 Jan’24
India is expected to become the third-largest economy in the world with a GDP of $5 trillion in the next three years and touch $7 trillion by 2030 on the back of continued reforms, the finance ministry said on Monday.
Ten years ago, India was the 10th largest economy in the world, with a GDP of $1.9 trillion at current market prices.Today, it is the 5th largest with a GDP of $3.7 trillion (estimate FY24), despite the pandemic and despite inheriting an economy with macro imbalances and a broken financial sector, said the ministry’s January 2024 review of the economy.
“This ten-year journey is marked by several reforms, both substantive and incremental, which have significantly contributed to the country’s economic progress,” it said.These reforms, it added, have also delivered an economic resilience that the country will need to deal with unanticipated global shocks in the future.
The ministry said that in the next three years, India is expected to become the third-largest economy in the world, with a GDP of $5 trillion.”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 said.
Finance Ministry Highlights Four Key Challenges as India Aims for $7 Trillion Economy
Ahead of the Interim Budget announcement, the Finance Ministry has laid out four challenges confronting the Indian economy, including artificial intelligence’s threat to services sector, the trade-off between energy security & economic growth and the availability of a skilled workforce.
Mentioning the challenges confronting the Indian economy, the Finance Ministry noted that in an era of an increasingly integrated global economy, India’s growth outlook also depends on the spillover effects of global developments and not just its domestic performance. “Increased geoeconomic fragmentation and the slowdown of hyper-globalisation are likely to result in further friend shoring and onshoring, which are already having repercussions on global trade and, subsequently, on global growth,” the report said.