India is poised to become a $4 trillion economy before the upcoming general elections, according to a statement by Commerce Minister Piyush Goyal on January 3. Goyal expressed confidence that within 2-2.5 years, India would further soar to a $5 trillion economy, positioning it as the third-largest GDP in the world by 2027. The minister made these remarks during the inauguration of the
Aatmanirbhar Bharat Utsav in New Delhi.
Goyal's optimistic outlook follows unverified reports in November suggesting that India had already reached the $4 trillion mark. However, current data indicates that, based on a budgeted target of 10.5% for nominal GDP growth in FY24, India is striving for a $3.7 trillion figure in the current fiscal year. The International Monetary Fund's World Economic Outlook database for October 2023 projects India's GDP to reach $4.95 trillion in 2026.
The significance of the $5 trillion target lies in
Prime Minister Narendra Modi's call in 2019 for the country to achieve this milestone by 2024 during his second term.
India maintains its position as the fastest-growing major economy globally, with the National Statistical Office reporting a robust 7.6% growth in real GDP for the second quarter of the fiscal year, exceeding market expectations and the Reserve Bank of India's forecast.
Despite a dip in GDP growth to 7.7% for the first half of 2023-24, down from 9.5% in the corresponding period the previous year, the Reserve Bank of India revised its forecast in December, projecting a 7% growth rate for FY24.
He stressed the need to instill pride in both producers and consumers, encouraging the purchase of products made in India. Recent data indicates a decline in India's merchandise exports by 6.5% YoY in April-November, while imports contracted by 8.67% during the same period. The commerce ministry anticipates a rise in exports during the last quarter of the current fiscal year based on historical trends.
