By 2030, India’s GDP might reach $7 trillion: Review

NEW DELHI: A study of the Indian economy released on Monday predicts that, despite dangers and uncertainties in the global economic environment, the country’s robust domestic demand would propel the economy to develop at a rate of 7% in the fiscal year 2025, up from growth at or over 7% in 2023–2024.

In addition, it said that India may aim to reach a $7 trillion economy by 2030, or within the next 67 years, claiming that this would be a major turning point in the country’s progress toward providing a standard of living and a quality of life that both meet and surpass the expectations of the Indian populace.
“The Indian economy would have risen at or over 7% annually for the fourth year after the epidemic if the FY25 forecast proves to be accurate. That would be a remarkable accomplishment that would demonstrate the tenacity and promise of the Indian economy. According to the evaluation, V Anantha Nageswaran, the finance ministry’s senior economic adviser, said it bodes good for the future. The Reserve Bank of India (RBI) forecasts a 7% growth rate for the current fiscal year, while the National Statistical Office (NSO) projects a 7.3% growth rate for the GDP in 2023–2024.
According to the study, the economy has grown at a pace of more than 7% over the previous three years thanks to the strength of domestic demand. The government’s reforms and policies during the last 10 years are credited with the strength of domestic demand, including private consumption and investment, the report said.
The supply side has also benefited from initiatives to promote manufacturing and investments in digital and physical infrastructure. The assessment claims that these factors taken together have stimulated the nation’s economy.
It is only the increased likelihood of geopolitical wars that warrants worry. Skills development, learning outcomes, health, energy security, lowering the cost of compliance for MSMEs, and gender parity in the workforce are among the priority topics for next changes, according to the statement.
It claimed that the Center’s reforms over the previous ten years had rebuilt the economy’s capacity for healthy growth and laid the groundwork for a robust governance environment based on partnerships.
“There are solid arguments in favor of the theory that India’s financial and economic cycles have become stronger and longer. India is thus well-positioned for further rapid expansion in the next years, the assessment states.
Four dangers were noted, including the likelihood of further friend-shoring and onshoring, which is already having an impact on global commerce and, therefore, on global economy, and the slowing of hyper-globalization and growing geo-economic fragmentation.
According to it, there are many other aspects to this trade-off between energy security and economic development vs energy transition, including geopolitical, technical, fiscal, economic, and social factors, as well as how individual countries’ policy choices affect the economy of other nations.
According to the analysis, governments worldwide face a great challenge as a result of the problems artificial intelligence (AI) raises about employment, especially in the services industry.