India’s ambition of becoming a $5 trillion economy may take a few more years than what the government estimates, if one is to go by the International Monetary Fund’s (IMF) projections.
While the government has been working towards achieving the $5 trillion GDP mark by FY25, IMF’s data projections show India may not hit that mark until FY29. This would mean a delay of at least four years for India to realise its target.
In 2019, Prime Minister Narendra Modi had envisioned making India a $5 trillion economy and a global economic powerhouse by 2024-25. With this, India would become the third-largest economy in the world.
However, IMF’s data shows that India’s GDP at current prices may grow from an estimated $3.04 trillion in FY22 to about $4.92 trillion by FY28, still shy of that $5 trillion mark.
In its latest World Economic Outlook report released last month, IMF had cut India’s growth forecast by 80 basis points to 8.2 percent for FY23. This compares with the 7.2 percent growth forecast for FY23 by the Reserve Bank of India.
The IMF also pared India’s real GDP growth forecast for FY24 by 20 bps to 6.9 percent. The fund said India’s downgrade reflects in part weaker domestic demand—as higher oil prices are expected to weigh on private consumption and investment—and drag from lower net exports.
https://www.cnbctv18.com/economy/indias-5-trillion-economy-ambition-not-before-fy29-13366622.htm
