The Ministry of Finance‘s monthly review report anticipates that the Indian economy will witness close to a 7% growth rate in the upcoming financial year starting April 2024. Fuelled by strong domestic demand, the economy has maintained a growth rate exceeding 7% over the last three years.
Having achieved a growth rate of 7.2% in 2022-23 and 8.7% in 2021-22, India is poised to sustain its status as the fastest-growing major economy with an expected growth of 7.3% in the current financial year 2023-24.
The report attributes the robustness in domestic demand to a decade of government reforms and measures, strengthening both the supply side, through infrastructure investments, and the manufacturing sector, thereby propelling economic activity.
As the financial year 2024-25 unfolds, real GDP growth is forecasted to hover around 7%, with considerable potential for growth rates to surpass this benchmark by 2030. Factors contributing to this optimistic outlook include the expansion of digital infrastructure, technological progress through international collaborations, accelerated human capital formation, and an increasingly favourable investment climate.
The report envisions India securing its position as the world’s third-largest economy, with a GDP reaching USD 5 trillion in the next three years. Looking ahead, the ambitious goal of becoming a USD 7 trillion economy by 2030 is set, marking a significant milestone in elevating the quality of life for the Indian populace.
With firm GDP growth forecasts, manageable inflation levels, political stability, and indications of the central bank concluding its tightening of monetary policy, the economic landscape of India appears poised for a promising trajectory.
