Indian economy could be worth $5 trillion by FY27, $10 trn by FY34, says CEA
Virendra Pandit
New Delhi: It is not a difficult target: India could become a USD 5 trillion economy by 2026-27, and a USD 10 trillion by FY34.
Addressing an event organized by UNDP India, V. Anantha Nageswaran, Chief Economic Advisor to the government, said on Tuesday that India is relatively better placed than other emerging economies.
“On the face of it, it looks optimistic, even ambitious. We are now USD 3.3 trillion. It is not such a difficult target to get to USD 5 trillion by 2026-27… Then if you simply assume 10 percent nominal GDP growth in dollar terms, you get to USD 10 trillion by 2033-34, and another doubling with the same rate,” he said.
In 2019, Prime Minister Narendra Modi envisioned making India a USD 5 trillion economy and global powerhouse by 2024-25.
Nageswaran also emphasized the need for climate tagging of the budget.
“GDP is the worst measure of economic activities but for all others. Because everything else you take comes with their own limitations and serious subjectivity,” he noted.
The World Bank has cut India’s economic growth forecast for the current fiscal to 7.5 percent as rising inflation, supply chain disruptions, and geopolitical tensions taper a post-pandemic recovery.
India’s economy grew 8.7 percent in the last fiscal (2021-22) against a 6.6 percent contraction in the previous year because of the pandemic-related downturn.
In its third monetary policy of 2022-23, the Reserve Bank of India retained its GDP growth forecast at 7.2 percent for the current fiscal but cautioned against negative spillovers of geopolitical tensions and a slowdown in the global economy.
