Union Finance Minister Nirmala Sitharaman on Wednesday said that India’s economy can be worth $30 trillion by 2047. Speaking at the Vibrant Gujarat Summit 2024, FM Sitharaman said India all set to be the third largest economy by 2027-28 with more than $5 trillion GDP.
“It is possible India will be the third largest economy by 2027-28 and also our GDP will cross $5 trillion by that time. The estimate that India will be at least a $30 trillion economy by 2047 is a conservative estimate,” Sitharaman said on Wednesday.
She added that with the collective efforts of the government and industry push, India is moving at an exponential growth rate.
“Since 2014, the approach between states and Centre has been of cooperative federalism, competitive federalism and collaborative federalism. That is how today you find states competing with one another on who will contribute how much towards India becoming a developed nation in 2047,” she said.
India, boasting a GDP of around $3.4 trillion, presently holds the position as the fifth largest economy globally, trailing behind the United States, China, Japan, and Germany. The Indian economy is expected to experience a growth rate of 7.3 per cent in the current fiscal year, surpassing the 7.2 per cent growth rate achieved in 2022-23.
India has set a target to achieve the status of a developed economy worth $30 trillion by 2047 through its ambitious Viksit Bharat plan.
FM Sitharaman on Wednesday said: “We are not only aiming to become a $30 trillion economy by 2047 but also aim to ensure inclusive growth.”
She added India received foreign direct investments worth $595 billion in the past 8-9 years.
Noting the NDA government’s achievements, Sitharaman said more than 50 crore Indians have bank accounts at present compared to 15 crore in 2014.
Earlier in the day, Prime Minister Narendra Modi expressed India’s commitment to transforming into a developed nation within the next 25 years. He emphasized that this period of time is India’s Amrit Kaal.
PM Modi said: “We are all aware of the global circumstances. So, in times like these, if the Indian economy is displaying such resistance, if the growth in India is showing such momentum, a big reason behind this is our focus on structural reforms in the last 10 years. These reforms have enhanced the capacity, capability and competitiveness of India’s economy.”
Speaking about India’s economy Modi said, “Today, India is the fifth largest economy in the world. 10 years ago, India was on the 11th position. Today, all major agencies estimate that India will be in the top three economies of the world in the coming years. Let people across the world do their analysis, but it is my guarantee that it will happen.”
Earlier this month, the National Statistical Office (NSO) stated that India’s real GDP growth in 2023-24 is estimated to be 7.3%, compared to 7.2% a year ago.
With GDP growth in the first half of this year clocking at 7.7%, as per the NSO’s advance estimates, it can be estimated that the second half will grow about 6.9%-7%.
Interestingly, the NSO anticipated a slight easing in the growth of Gross Value Added (GVA) in the economy from 7% in 2022-23 to 6.9% this year.
Additionally, they project a nominal GDP growth of 8.9% as opposed to the 10.5% estimated in the Budget. Economists caution that this could result in the fiscal deficit surpassing the targeted 5.9% of GDP for the year and reaching approximately 6%.
Vibrant Gujarat is a biennial summit organized by the Gujarat government with the aim of attracting investment from both other states and other countries. The brainchild of Modi, was first introduced in 2003, during his tenure as the CM of Gujarat. Over the years, nine editions of the VGGS have been successfully conducted. Each summit revolves around a specific theme, and this year’s theme is ‘Gateway to the Future’.
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