The Indian Economy might reach $5 trillion in GDP by 2025–2026 at its present growth rate of 6.4%. House standing committee on finance called a meeting of senior government officials to hear their opinions on the general economic outlook and road map for a $5 trillion economy. Top officials told a House subcommittee on finance that India would be able to reach the aspirational $5 trillion economy by 2025 or 2026 despite the current global headwinds. Despite the extremely unstable geopolitical environment due to the Russia-Ukraine war, they continued that the Indian economy is performing well.
The parliamentary standing committee had invited senior government officials on finance to give their opinions on the five trillion dollar economy’s overall outlook and road map.
Road Map for $5 trillion Economy
Ajay Seth, the secretary of economic affairs, Parameswaran Iyer, the CEO of NITI Aayog, and V. Ananth Nageswaran, the chief financial adviser, were present at the meeting before the parliamentary committee discussed the roadmap for reaching a $5 trillion. The panel had also called the finance secretary, T.V. Somanathan, but he could not make it, according to the report.
According to Union Minister Nitin Gadkari, India has the world’s fastest-growing major Economy and is on track to reach a GDP of $5 trillion by 2024–2025. At a FICCI-sponsored event, Mr Gadkari stated that the federal government’s goal is to increase employment and growth to achieve sustainable development. According to the minister of highways and road transportation, India would be crucial to meeting the Sustainable Development Goals (SDGs) by 2030.
Analysis by Banks on the GDP Growth
Leading public sector bank representatives told the parliamentary standing committee on finance last week that making India a $5 trillion economy by 2024–2025 looks challenging and may only be achievable by 2030 at the current GDP growth rate. This was due to unstable geopolitical situations.
According to State Bank of India (SBI), Punjab National Bank (PNB), and Union Bank of India (UBI) representatives speaking to the Parliamentary standing committee on finance last week, the goal of making India a $5 trillion economy by 2024–2025 appears challenging and may only be achievable by 2030 at the current GDP growth rate.
Post-Pandemic India Economy Recovery
The Economic Report 2022–23, given in Parliament on January 31st, stated that the Indian economy has recovered from the pandemic-induced slowdown and is set to record robust and sustainable growth. Throughout the first eight to nine months of FY23, the government led an increase in private consumption and capital expenditures, essentially based on the prediction for FY23. Moreover, estimates suggest that instead of 6.5%, growth in FY24 may be closer to the lower end of 6-6.8%. The projections are aligned with the India growth estimates made by the IMF, World Bank and other agencies, and in that sense, justifiable.
Despite the current global challenges, top officials told a Parliamentary panel that India would be able to reach its goal of being a $5 trillion economy by 2025–2026. The officials also added that the Indian Economy is doing well at its current growth rate of 6.4%. It will be able to reach $5 trillion in GDP by 2025–2026 even though the geopolitical environment is volatile as a result of the Russia–Ukraine war, according to sources with knowledge of the situation.