Finance Minister Nirmala Sitharaman has said that India will become a 30 trillion dollar economy by 2047. She said the country will become a 5 trillion dollar economy by 2028, adding that India has received 919 billion US dollars in foreign direct investment in 23 years till 2023. Of this, 65 percent of the investments came in the last nine years.
Sitharaman also praised the contribution of Gujarat as a Growth engine of the country with more than 8% contribution to the country's GDP. Sitharaman was addressing Vibrant Gujarat Global Summit in Gandhinagar. Speaking on the same occasion, Commerce and Industry Minister Piyush Goyal said the PM Gatishakti initiative is emerging as a global benchmark for integrated & seamless multi-modal connectivity.
Foreign Secretary Vinay Mohan Kwatra said that India has exchanged four MOUs with the UAE at the Vibrant Gujarat Global Summit. These MoUs are related to investment cooperation in innovative health care, renewable energy, food parks, and logistics cooperation.
In the meantime, an industry body has termed Indian economy as the most resilient economy among the top 10 leading economies in 2024 and 2025. The PHD Chamber of Commerce and Industry, in a report after it conducted an analysis, has praised the trends in the Indian economy.
The industry body's analysis was based on key macroeconomic indicators, including GDP growth, export growth, gross national savings, total investments, and the debt-to-GDP ratio.
With a consistent GDP growth rate exceeding 7% over the past two years and a projected continuation of this trend in the current year too, the economy is expected to surpass USD 4 trillion in 2024 and thereafter it will move to next orbit in 2025, said Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry, in a press statement.
India as a country is making significant strides for its futuristic growth trajectory, said Agrawal, pegging GDP growth for the current financial year ending March 2024 at 7.4-7.5%.
The Indian economy is expected to grow 7.3% in the current financial year 2023-24, remaining the fastest-growing major economy, the National Statistics Office said on January 5. India's economy grew 7.2% in 2022-23 and 8.7% in 2021-22.
The first advance estimates of GDP by the statistical office come after the Reserve Bank of India (RBI) raised its growth forecast last month by 50 basis points to 7% from an earlier estimate of 6.5%.
According to the industry body PHDCCI, India's economy remains resilient despite the global headwinds. “Geopolitical conflicts are reshaping the world, disrupting global value chains, and causing inflationary pressures. However, India's geopolitical significance is growing significantly, earning praise from international institutions,” said Sanjeev Agrawal.
PHDCCI, citing experts, said markets are expected to remain resilient and are expected to make new highs in 2024. The Nifty 50 index and Sensex are likely to significantly surpass 25,000 and 75,000 points, respectively in 2024, benefiting from the government's continued reforms.
The inflation trajectory is expected to be around 4.5% on an average in 2024, PHDCCI said in the report. The Reserve Bank of India is expected to cut the repo rate by 100 basis points to bring the level of repo rate at 5.5% by the end 2024.
The RBI monetary policy committee, in its December meeting, unanimously decided to keep the policy repo rate unchanged at 6.5%, thus maintaining status quo for the fifth straight occasions. The repo rate is the rate of interest at which the RBI lends to other banks. (Inputs also from ANI)
