Key Points
India targets becoming developed nation by 2047
Economic Survey projects 8% annual growth needed
IMF forecasts India as $6.3 trillion economy by 2029-30
Government focusing on R&D and MSME sector
India aims to become a developed nation by 2047 when the country celebrates its 100th year of Independence.
To realise its economic aspirations of becoming Viksit Bharat by the time of the centenary of independence, India needs to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the State of the Economy report tabled in the Parliament by finance minister Nirmala Sitharaman said.
"While the desirability of this growth rate is unquestionable, it's important to recognise that the global environment - political and economic - will influence India's growth outcomes," it cautioned.
The projections for India from the lens of the International Monetary Fund (IMF) as recently as October of 2024-25 are sanguine. The IMF projected India to become a USD 5 trillion economy by 2027-28 and reach a size of USD 6.307 trillion by 2029-30.
This translates into an annual nominal growth rate of nearly 10.2 per cent in USD terms for 2024-25 to 2029-30.
Going ahead, enhancing economic freedom for individuals and small businesses is arguably the most important policy priority to define and bolster India's medium-term growth prospects, the Economic Survey report said.
The Indian economy grew by 5.4 per cent in real terms in the July-September quarter of the current financial year 2024-25. The quarterly growth was quite lower than RBI's forecast of 7 per cent. In the April-June quarter too, India's GDP grew at a slower pace than was estimated by its central bank.
The Reserve Bank in its latest monetary policy had cut India's growth forecast for 2024-25 to 6.6 per cent from 7.2 per cent. The government expects 6.4 per cent growth.
India's GDP grew by an impressive 8.2 per cent during the financial year 2023-24 and continued to be the fastest-growing major economy. The economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22.
In 2025-26, the Indian economy is projected to grow between 6.3 per cent and 6.8 per cent, the Economic Survey tabled today noted. The survey document highlights that the country's economic fundamentals remain strong, supported by a stable external account, fiscal consolidation, and private consumption.
It noted that the government plans to strengthen long-term industrial growth by focusing on research and development (R&D), micro, small, and medium enterprises (MSMEs), and capital goods. These measures aim to enhance productivity, innovation, and global competitiveness.
