The Indian economy has experienced a remarkable increase of over 87% in US dollar terms during the nine-year period leading up to 2023, according to a tweet from the finance minister’s office.
India’s GDP has now reached US$ 3.75 trillion in 2023, up from approximately US$ 2 trillion in 2014. This significant growth has propelled India from being the 10th largest economy in the world to the 5th largest. As a result, Finance Minister Nirmala Sitharaman said that India is now being recognized as a bright spot in the global economy.
Chief economic advisor V Anantha Nageswaran said that India is on track to become the world’s third-largest economy by 2027. Nageswaran emphasized that India’s rise from 10th place in 2014 to 5th place in 2023 has made it increasingly influential in the world economy. He also highlighted that India’s average contribution to the global GDP has grown from 1.1% in 1998-2007 to 5% in 2010-2019, with an estimated increase to 6% in 2021-2028.
Previously, Nageswaran stated that both the Reserve Bank of India and the Ministry of Finance anticipate a growth rate of 6.5% for the fiscal year 2023-2024 (FY24) and that the risks to this growth rate are balanced.
Furthermore, the International Monetary Fund (IMF) has estimated India’s GDP growth to be 5.9% in FY24, while rating agencies S&P and Fitch have projected a growth rate of 6%.
Additionally, the National Statistical Office’s provisional estimates indicate that India’s economic growth in FY23 stood at 7.2%, slightly lower than the initial advance estimates of 7%. The chief economic advisor anticipates that the final growth figure for FY23 will be revised higher
In terms of real GDP growth, India grew by 6.1% in the fourth quarter of the previous fiscal year, surpassing the expectations of most analysts. This growth was driven by a strong agricultural sector, a thriving services sector, a moderate increase in manufacturing, substantial government capital expenditure, and favourable baseline conditions. Notably, net exports played a significant role in bolstering the overall growth rate.
While the growth rate in FY23 was slower compared to the 9.1% recorded in FY22, it represented an impressive growth of 10.1% compared to the pre-pandemic year, FY20.
Source: Financial Express
