Tough to become $5-trn economy a year before IMF projection of FY27

India's GDP is estimated to grow to $3.58 trillion this financial year

- INDIVJAL DHASMANA

It would be a difficult task for the Indian economy to reach the $5-trillion mark a year before the International Monetary Fund (IMF) projection of 2026-27.

Pankaj Chaudhary, minister of state for finance, said in the Rajya Sabha on Tuesday that the government is taking steps to make the country a $5-trillion economy at a date earlier than the IMF's projection.

In that context, it would not be difficult to meet the projection in the third quarter of FY27.

Siz To meet the IMF's projection, the economy would have to grow 11.33 per cent compounded annually at current prices from 2025-26 onwards. If the target is to be advanced by a year, the compounded annual growth rate (CAGR) for nominal GDP would be 17.46 per cent for 2025-26 and 2026-27.

It should be noted that the IMF projected India's economy to be worth $5.10 trillion in 2026-27. This means it would be very close to $5 trillion in the third quarter of that year itself.

India's economy is officially projected to reach ₹2272 trillion, or $3.58 trillion, in the current financial year, going by the second advance estimates. Here, the exchange rate against the dollar is taken as 75.96, as was assumed by the IMF.