India to be a $5 trillion economy by FY28; reach $30 trillion by 2047: FM, ETCFO

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Finance minister Nirmala Sitharaman on Wednesday pitched the India story to investors, stating that it could emerge as a developed country by 2047 with gross domestic product of $30 trillion even by a “conservative estimate”.

Over the medium term, India could emerge as the world’s third-largest economy with GDP of over $5 trillion by FY28, she said.

Addressing a seminar at the Vibrant Gujarat Global Summit 2024 in Gandhinagar, she pointed at the immense investment opportunities India offers, asserting: “The 21st century will be India’s century”.

India is the world’s fifth largest economy now with GDP of $3.4 trillion, trailing only the US, China, Japan and Germany.

The minister said sunrise industries will receive a lot of government attention during the Amrit Kaal, the period between the 75th and 100th anniversary of India’s independence. The country’s post-pandemic recovery is on a strong footing, she added.

Gujarat, Sitharaman stressed, will be a growth engine for India during its bid to attain the developed nation status by 2047.

With a 5% share in India’s population, Gujarat contributes 8.5% to the country’s GDP. The state’s economy expanded at a compounded annual growth rate of about 12% between 2011 and 2021, way above the national average, she said.

The Modi government’s foreign direct investment (FDI) policy, she said, has catalysed inflows of a record $595 billion in the past nine years, despite global turmoil in recent years. These represent about 65% of the country’s cumulative FDI inflows in the 23 years through FY23.

Besides, the investor-friendly FDI policy has helped India in its bid to become an in-house producer of semiconductors.

The minister said: “Where policies bring in greater certainty, convenience, ease of doing business, FDI flows in. Of course, disruptions of higher US Fed rate and other things can divert it elsewhere.”

“But despite that, we have been receiving that kind of flow of the FDI. It is not as if it’s coming only for manufacturing, it is coming in the service sector (as well),” she added.

Highlighting the progress in financial inclusion in recent years, Sitharaman said about 80% of people now have bank accounts and the number of bank account holders has jumped more than three times since 2014 to 500 million now.

  • Published On Jan 11, 2024 at 08:49 AM IST

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