TLDR:
The Finance Ministry of India has projected that the country will become the world’s third-largest economy by 2027, with a GDP of $5 trillion. This comes as India is expected to achieve 7% growth in fiscal year 2024, marking the third consecutive year of such growth. The government’s long-term goal is to become a developed country by 2047.
The finance ministry’s report attributes India’s economic growth to reforms and measures implemented by the government over the past decade, particularly in the areas of domestic demand, private consumption, and investment. Investment in physical and digital infrastructure has also boosted the supply side and manufacturing sectors. Goldman Sachs predicts that India will surpass not just Japan and Germany, but also the United States, to become the world’s second-largest economy by 2075.
India’s stock market has shown optimism, with the Nifty 50 index rising over 20% in 2023 and breaching 22,000 for the first time this month. Investor confidence in India’s growth prospects, along with higher liquidity and domestic participation, has contributed to this rally. There are hopes for policy continuity and interest rate cuts by the Reserve Bank of India, which could further boost stock markets and stimulate spending in the economy.
India is set to become the world’s third-largest economy by 2027, with a GDP of $5 trillion, according to a report by the Finance Ministry. The ministry expects India to achieve 7% growth in fiscal year 2024, which would mark the third consecutive year of 7% GDP growth. The government’s long-term goal is to become a developed country by 2047. The report attributes India’s economic growth to reforms and measures implemented by the government over the past decade, particularly in the areas of domestic demand, private consumption, and investment. Investment in physical and digital infrastructure has also boosted the supply side and manufacturing sectors.
