According to Minister of State for Finance Pankaj Chaudhary, India will become a USD 5 trillion economy early in the 'Amrit Kaal' on the route to being an advanced economy by 2047. According to the International Monetary Fund (IMF), India will have a USD 5 trillion economy with the third highest GDP in 2027-28.
The USD 5 trillion mark will be reached thanks to a strong rupee as a result of macroeconomic stability, he said in a written reply to the Lok Sabha. "The government has set a target of becoming a developed economy by 2047." "It will become a USD 5 trillion economy early in the Amrit Kaal," Chaudhary said.
The Indian GDP was USD 3.7 trillion by the end of 2022-23. The Indian economy was worth USD 189 billion in 1980-81, but it grew to USD 326 billion within a decade. The GDP increased to USD 476 billion in 2000-01. India's GDP climbed to USD 1.71 trillion in 2010-11, and is expected to rise to USD 2.67 trillion in 2020-21. According to Chaudhary, the exchange rate is an important aspect because it ranks India's GDP size in the globe. "India is a market economy, and the government monitors economic progress through market-determined GDP and exchange rate," Mr. Chaudhary added.
He went on to say that both domestic and international markets determine India's GDP, exchange rate, and contribution of various sectors to GDP. Agriculture, industry, and services contributed 18.4%, 28.3%, and 53.3 percent of nominal GDP in 2022-23, respectively. According to Chaudhary, the government also helps to achieve economic success through policy interventions such as those proposed in annual budgets.
The implementation of the Insolvency and Bankruptcy Code, recapitalization of public sector banks, rollout of the Goods and Services Tax (GST), reduction in corporate tax, increase in effective capital expenditure, introduction of the Production Linked Incentive (PLI) scheme in 14 sectors, continuous liberalization of the FDI regime, and construction of digital infrastructure are among the major initiatives undertaken by the government in the last 9 years to directly increase GDP.
