The Finance Ministry report anticipates a robust growth trajectory for the Indian economy, projecting a GDP exceeding 7% fueled by strong domestic demand and economic reforms. The GDP is expected to more than double from $3.5 trillion in 2022 to $7.3 trillion by 2030, with significant growth attributed to economic reforms and substantial investments in infrastructure. These measures have bolstered India's economic resilience against global shocks.
As of January 29, the Indian economy reached $3.7 trillion, showcasing substantial progress over the past decade. The government's emphasis on infrastructure investment, increasing from Rs 5.6 lakh crore in FY15 to an estimated Rs 18.6 lakh crore in FY24, reflects a strategy to sustain and enhance economic growth.
However, the report acknowledges challenges, including potential job cuts in the services sector due to artificial intelligence, the trade-off between energy security and economic growth amid climate change, and the need for a skilled workforce. It emphasizes the interconnectedness of India's growth outlook with global developments, citing disruptions in the Red Sea affecting shipping costs and trade consignments.
Despite challenges, the government aims for India to become a 'developed country' by 2047, expressing confidence in achieving this goal through ongoing reforms.
(With Agency Inputs)