Chief Economic Advisor V Anantha Nageswaran believes that India can become a $5 trillion economy by the FY 2025-26 or 2026-27.
Addressing the press conference that was held after Finance Minister Nirmala Sitharaman tabled the Union Budget 2022-2023, the CEA said that if the GDP continues to grow at around 8 percent, a $5 trillion economy fo India is possible.
He said, "If we continue to retain the path of 8 per cent of real GDP growth, it will translate into even 8 per cent dollar GDP growth. If we extrapolate it, we should be a $5 trillion economy in terms of nominal GDP in the Financial Year 2025-26 or the Financial Year 2026-27".
In 2019, Prime Minister Narendra Modi envisioned to make India a $5 trillion economy by the Financial Year 2024-25. The Indian economy is projected to grow at 9.2 per cent in the current financial year.
The government on February 1 projected that India’s nominal gross domestic product (GDP) will grow by 11.1 percent in 2022-23. Adjusted for inflation, India’s real GDP, according to the government estimates, will grow 9.2 percent in 2021-22.
According to the Economic Survey 2021-22 tabled in Parliament on January 31, the GDP growth is likely to remain 8 to 8.5 per cent in 2022-23 and 7.1 per cent in 2023-24.
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“This projection is based on the assumption that there will be no further debilitating pandemic related economic disruption, monsoon will be normal, withdrawal of global liquidity by major central banks will be broadly orderly, oil prices will be in the range of $70-$75 per barrel, and global supply chain disruptions will steadily ease over the course of the year,” the annual Economic Survey 2021-22 said.The International Monetary Fund (IMF) has projected that India's real gross domestic product (GDP) will grow 9 per cent in 2022 and 2023 followed by 7.1 per cent growth in 2024.