The Indian economy is set to achieve nearly 7% growth in the financial year 2024-25, according to a report released by the Ministry of Finance on Monday. The report attributes this positive outlook to the robust domestic demand that has propelled the country to a growth rate exceeding 7% over the past three years.
India's economic performance in recent years demonstrates substantial growth, with a 7.2% expansion in 2022-23 and an impressive 8.7% growth in 2021-22. The current financial year, 2023-24, is expected to witness a growth rate of 7.3%, securing India's position as the fastest-growing major economy.
The report credits the strength in domestic demand, driven by private consumption and investment, to government reforms and initiatives implemented over the past decade. Investments in both physical and digital infrastructure, along with measures to boost manufacturing, have bolstered the supply side, providing a significant boost to economic activity in the country.
According to the report, “In FY25, real GDP growth will likely be closer to 7 per cent,” with the potential for the growth rate to surpass 7% by 2030.
The report highlights the ongoing expansion of digital infrastructure, improvements in institutional efficiency, technological progress through collaboration with foreign partners, accelerated human capital formation, and an increasingly favorable investment climate.
It projects that India is poised to become the third-largest economy globally in the next three years, reaching a GDP of USD 5 trillion.
The report states that “India can aspire to become a USD 7 trillion economy in the next six to seven years (by 2030).”
“This will be a significant milestone in the journey to delivering a quality of life and standard of living that match and exceed the aspirations of the Indian people.”
Factors contributing to the optimistic economic outlook include firm GDP growth forecasts, manageable inflation levels, political stability at the central government level, and indications that the central bank has concluded its tightening of monetary policy.
(Inputs from ANI)
