'India On Course To Become $5-Trn Economy By 2027'

India looks set to sustain a resilient growth trajectory in the next three years to record two years of above 7 per cent growth and stay on the course to become the third-largest economy in the world with a GDP of $5 trillion by 2027, according to the Finance Ministry.

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The Government has set a higher goal of becoming a 'developed country' by 2047 and this goal looks achievable given a robust backdrop a growth of 7.6 per cent in real terms in the first half of the current financial year - compared to the first half of FY23 and with the financial year FY24 marking the third successive year of 7 per cent plus strong growth of the Indian economy even as the global economy struggles to grow at more than 3 per cent.

The view is reinforced by the National Statistical Office's First Advance Estimates, pegging India's real GDP to grow at 7.3 per cent in FY24, higher than the forecast made by various national and international agencies, observes a review by the Finance Ministry, of the state of the Indian economy and its journey in the last 10 years.

The Finance Ministry identifies three global trends and India's strengths in that context. First, countries are only now discovering the enormous integration of global supply chains that have taken place in the last few decades and the recent events in the Red Sea may have brought back concerns over reliance on global supply chains, further aggravating the slower growth in global trade in 2023. Closely related to this challenge is the advent of Artificial Intelligence with the profound and troubling questions it poses for growth in services trade and employment and third, the energy transition challenge that has led to a single-minded focus on reducing carbon emissions.

The Finance Ministry places the Indian economy as strongly placed than ever to take on these three key challenges because of the policies adopted and implemented in the last decade.