Live
- IPL 2025 Auction: 13-year-old Vaibhav Suryavanshi becomes youngest player to be signed in tournament's history
- About 62 lakh foreign tourists arrived in India in 8 months this year: Govt
- IPL 2025 Auction: Gujarat bag Sherfane Rutherford for Rs 2.60 cr; Kolkata grab Manish Pandey for Rs 75 lakh
- Assam CM meets Governor, cabinet expansion on the cards
- IPL 2025 Auction: RCB buy Jacob Bethell for Rs 2.6 cr; Ellis sold to CSK for Rs 2 crore
- Commercial coal mines register highest-ever single day dispatches at 0.62 million tonnes
- More German companies adopting AI applications: statistics
- NASA Issues Warning About 170-Foot Asteroid Heading Towards Earth at 47,644 KM/H
- One killed, three injured in cargo plane crash near Vilnius airport
- PM Modi opens global cooperative meet, launches UN International Year of Cooperatives 2025
India expected to become third-largest economy in next 3 years: FinMin
In the next three years, India is expected to become the third-largest economy in the world, with a GDP of $5 trillion, the Finance Ministry said in a review of the Indian economy just days before the Interim Budget (Feb 1).
New Delhi: In the next three years, India is expected to become the third-largest economy in the world, with a GDP of $5 trillion, the Finance Ministry said in a review of the Indian economy just days before the Interim Budget (Feb 1).
This is not the Economic Survey of India prepared by the Department of Economic Affairs. That will come before the full Budget after the general elections, the ministry said.
Ten years ago, India was the 10th largest economy in the world, with a GDP of $1.9 trillion at current market prices. Today, it is the fifth largest with a GDP of $3.7 trillion (est. FY24), despite the pandemic and despite inheriting an economy with macro imbalances and a broken financial sector, the review said.
This 10-year journey is marked by several reforms, both substantive and incremental, which have significantly contributed to the country’s economic progress. These reforms have also delivered an economic resilience that the country will need to deal with unanticipated global shocks in the future.
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 reforms will be more purposeful and fruitful with the full participation of the state governments. The participation of the states will be fuller when reforms encompass changes in governance at the district, block, and village levels, making them citizen-friendly and small business-friendly and in areas such as health, education, land and labour in which states have a big role to play, it added.
The strength of the domestic demand has driven the economy to a 7 per cent plus growth rate in the last three years.
The robustness seen in domestic demand, namely private consumption and investment, traces its origin to the reforms and measures implemented by the government over the last ten years.
The supply side has also been strengthened with investment in infrastructure – physical and digital – and measures that aim to boost manufacturing. These have combined to provide an impetus to economic activity in the country.
Accordingly, in FY25, real GDP growth will likely be closer to 7 per cent, the Finance Ministry said.
