India is projected to become the world's third-largest economy, reaching a GDP of USD 5 trillion in the next three years and aiming for USD 7 trillion by 2030, according to the Finance Ministry.
A decade ago, India was the 10th largest economy with a GDP of USD 1.9 trillion, but it now stands as the 5th largest at USD 3.7 trillion, despite challenges like the pandemic and economic 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 said.
The ministry attributes this progress to substantial and incremental reforms that have enhanced economic resilience. The government aims to achieve developed country status by 2047, emphasising the need for state governments' full participation in purposeful and fruitful reforms at various levels.
"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.
The review highlights the strength of domestic demand contributing to a 7 per cent plus growth rate in recent years, with potential for growth well 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," said the review report, and added there is, however, considerable scope for the growth rate to rise well 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 said.
The report highlighted the importance of the financial sector and structural reforms, expressing concerns only about geopolitical risks. The Chief Economic Adviser notes the unprecedented infrastructure development and public sector capital investment increase while acknowledging global economic challenges in maintaining recovery post-COVID.
(With PTI inputs)
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