India’s GDP to hit $5 trillion, securing third largest economy.

India is projected to become the world’s third-largest economy with a GDP of $5 trillion in the next three years and $7 trillion by 2030, according to the Finance Ministry. Despite facing macro imbalances and a broken financial sector, India has risen from being the 10th largest economy 10 years ago to the 5th largest economy today. The ministry credited this progress to a series of reforms that have contributed to the country’s economic growth and resilience. The ministry emphasized that with continued reforms, India can achieve its goal of becoming a developed country by 2047. The ministry also highlighted the important role that state governments play in driving reforms and called for greater participation from the district, block, and village levels. The review also mentioned that the Indian economy has the potential to grow at a rate above 7% in the coming years, driven by the financial sector and structural reforms. However, geopolitical conflicts remain a concern. Chief Economic Adviser V Anantha Nageswaran highlighted the challenges that the global economy is facing in maintaining its post-Covid recovery. Supply chain disruptions and other shocks have the potential to impact trade flows, transportation costs, economic output, and inflation worldwide.