NEW DELHI: INDIA’s economy is expected to grow above 7% in the coming years on the back of the country’s robust financial sector and ongoing reforms, says a new report of the finance ministry released ahead of the interim Budget.
The report titled The Indian Economy: A Review envisions India becoming the world’s third-largest economy within the next three years with a GDP of $5 trillion and a $7-trillion economic power house by 2030.
The goal of achieving the ‘developed country’ status by 2047 is achievable if the reforms are not interrupted, it says. “It now appears very likely that the Indian economy will achieve a growth rate at or above 7% for FY24, and some predict it will achieve another year of 7% real growth in FY25 as well. If the prognosis for FY25 turns out to be right, that will mark the fourth year post-pandemic that the economy will have grown at or over 7%. That would be an impressive achievement, testifying to the resilience and potential of the Indian economy,” it said.
The report also dwells on the positive impact of reforms on private investments citing measures such as GST.
The report, prepared by Chief Economic Advisor V Anantha Nageswaran and his team, however, does not replace the Economic Survey, which will be released before the full Budget is presented after the general elections.
Centre-state ties for success of reforms
To accelerate growth, the report calls for collaboration between the Centre and states, emphasising the need for purposeful reforms and complete participation from state governments. It also highlights external challenges, particularly the risk of geopolitical conflicts