India is currently the 5th largest economy in the world and is expected to become a USD 5 trillion economy by 2027. Earlier the target year to reach the same was 2025. However, due to the impact of the coronavirus pandemic, the economies of several countries have been adversely affected.
The country, under the governance of Prime Minister Narendra Modi has embarked on a remarkable journey toward becoming a USD 5 trillion economy in the next few years. Achieving this economic milestone will show the country’s growth and potential on a global stage.
Talking exclusively to Business Today, PM Modi in August said that he is confident about the Indian economy’s strong growth and performance, as well as its ability to deliver unprecedented performance.
“India was seen as a country which was not living up to its full potential. In 10 years, India has moved from the 10th largest economy of the world to 5th largest economy of the world. In 10 years, India is now seen as a country with immense potential which is backed by impressive performance,” he said.
Recently, Michael D Patra, Deputy Governor of the Reserve Bank of India has said that India will be a USD 5 Trillion economy and the 3rd largest in the world by market exchange rates by 2027. This growth momentum will be aided by the demographic advantage and pace of financial sector development, as stated by Economic Times quoting a PTI report.
Similarly, the International Monetary Fund (IMF) is also expecting India to become a USD 5 trillion economy by FY 2027. “More broadly, the Indian economy is recovering well from the pandemic with real GDP estimated to have recovered to above its pre-pandemic level by the end of March 2022. The recovery is expected to continue although it is facing downside risks, including from external factors,” Luis E Breuer, senior resident representative — India, Nepal, and Bhutan informed Business Standard.
KV Kamath, National Bank for Financing Infrastructure and Development (NaBFID) Chairman, in conversation with CNBC-TV18 at the Global Fintech Fest 2023, had stated that driven by digital transformation (20-25% of the growth), the country will be a USD 25 trillion economy in 25 years. “The ability of fintechs to disrupt and collaborate is enormous, and they have an opportunity to scale in India and globally,” he said.
Notably, India’s growth is built on various pillars- agriculture, manufacturing, services, entrepreneurs, infrastructural development, education, digital revolution, banking, global trade, and more. The government has already taken a host of measures and reforms to give a boost to all these sectors and is also coming up with more investments to provide additional support.
Speaking to Business Today, the Prime Minister had listed out the initiatives which can help the country grow like Vocal for Local, Aatmanirbhar Bharat, Zero Defect & Zero Effect in manufacturing, Zero Import, Maximum Export in agriculture, and Self-Sufficiency in energy.