India to become $5 trillion economy early in Amrit Kaal: FinMin, ET Auto
Minister of state for finance, Pankaj ChaudharyMinister of state for finance Pankaj Chaudhary declared on Monday that India is poised to achieve the milestone of a USD 5 trillion economy in the early stages of the ‘Amrit Kaal,’ as part of its broader aim to become an advanced economy by 2047.
According to the International Monetary Fund (IMF), India is projected to attain the status of a USD 5 trillion economy with the third-largest GDP by 2027-28.
Chaudhary emphasized that reaching the USD 5 trillion mark will be facilitated by a robust rupee, stemming from macroeconomic stability. He conveyed this in a written response in the Lok Sabha, adding that the government’s overarching objective is to achieve advanced economy status by 2047.
As of the conclusion of the 2022-23 fiscal year, India’s GDP stood at USD 3.7 trillion. Reflecting on historical data, the Indian economy measured USD 189 billion in 1980-81, which surged to USD 326 billion within a decade. By 2000-01, the GDP had risen to USD 476 billion.
In 2010-11, India witnessed a substantial leap in GDP, reaching USD 1.71 trillion, and this figure further expanded to USD 2.67 trillion in 2020-21.
Chaudhary underscored the significance of the exchange rate, emphasizing that it plays a crucial role in determining India’s GDP size on the global stage. He clarified that India operates as a market economy, with the government closely monitoring economic progress through market-driven indicators such as GDP and exchange rates.
Additionally, Chaudhary noted that both domestic and international markets influence India’s GDP, exchange rates, and the contributions of various sectors. In the fiscal year 2022-23, the contributions of agriculture, industry, and services to nominal GDP stood at 18.4%, 28.3%, and 53.3%, respectively.
The Minister highlighted the government’s role in fostering economic progress through policy interventions, including measures outlined in annual budgets. Over the past nine years, significant initiatives, such as the implementation of the Insolvency and Bankruptcy Code (IBC), recapitalization of public sector banks, the rollout of Goods and Services Tax (GST), reduction in corporate taxes, increased capital expenditure, introduction of the Production Linked Incentive (PLI) scheme in 14 sectors, continuous liberalization of the FDI regime, and advancements in digital infrastructure, have directly contributed to boosting GDP.
- Published On Dec 5, 2023 at 11:36 AM IST
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