The financial year 2023-24 marks the third successive year of over 7 per cent GDP growth, and the Indian economy is expected to become the third largest in the world having a size of $5 trillion in the next 3 years.
“In the next three years, India is expected to become the third-largest economy in the world, with a GDP of $5 trillion. The government has, however, set a higher goal of becoming a ‘developed country’ by 2047. With the journey of reforms continuing, this goal is achievable,” the finance ministry said in its report, ‘The Indian Economy: A Review January 2024’.
It said FY24 marks 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 report said the macroeconomic data demonstrates the internal strengths of the Indian economy, which bestow on it the ability to grow notwithstanding unfavourable global economic conditions.
“Therefore, it is eminently possible for the Indian economy to grow in the coming years at a rate above 7 per cent on the strength of the financial sector and other recent and future structural reforms. Only the elevated risk of geopolitical conflicts is an area of concern,” it said.
India can aspire to become a $7 trillion economy in the next six to seven years (by 2030), it said.
The all-inclusive welfare approach of the government is expected to contribute to the enlargement of the consumption base through the expansion of the middle class.
Despite challenges posed by the global health crisis and variability in climate conditions, the agriculture sector has demonstrated remarkable tenacity and resilience, according to the report.
India is the third-largest fintech economy in the world after the USA and the UK.
“The firms undergoing the IBC resolution process have witnessed a significant improvement in their performance in the post-resolution period,” it said.
India became the world’s fourth largest stock market in the world by market capitalisation, overtaking Hong Kong thanks to significant interest from domestic and global investors in the Indian stock market and sustained IPO activity has placed the Indian market fourth in the world by market capitalisation.
The employment situation in India has experienced a positive transformation, with notable achievements in formalisation, skill development, entrepreneurship, and inclusive growth.
“MSMEs are becoming increasingly vibrant and dynamic, with the supportive measures implemented by the government,” the report said.
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