As India cements its position as the world’s third-largest economy, Prime Minister Narendra Modi has set an ambitious vision for the country to grow its GDP from $3.7 trillion currently to $5 trillion within 3 years and eventually to $7 trillion by 2030.
Speaking at the India Today Conclave 2024 yesterday, PM Modi expressed confidence that India is firmly on track to achieve these targets based on the strong economic growth momentum by rising investments and capital expenditures over the past few years.
Recent GDP growth figures seem to validate the optimism India registered a higher than expected 8.4% growth in the December 2022 quarter. For the full fiscal year 2024, GDP growth estimates have been revised upwards to 7.6% from the earlier 7.3%. Although global agencies like IMF have relatively modest projections of 6.7% for India, the country remains the fastest growing major economy globally.
Experts have highlighted that a key factor propelling India’s growth this cycle is the steady rise in investment to GDP ratio from a low of 27% in 2003 to 34% currently and an expected 36% by 2027. This closely mirrors the robust 2003-07 growth phase led by rising investments. The government’s focus on infrastructure building and reforms to foster entrepreneurship.
The Interim Budget 2024-25 presented yesterday puts fiscal prudence front and center with a deficit target of 5.1% for next fiscal and a glide path to bring it down further to 4.5% by 2026. While global headwinds like inflation and geopolitical tensions persist, prudent economic policies mean India is well-placed to meet its growth ambitions.
PM Modi highlighted how India is now home to over 125,000 startups spanning 600 districts, reflecting the entrepreneurial economic. Government schemes like PM Swanidhi that empower small businesses also boost financial inclusion and equitable growth.
Modi government policy focus on abandon sectors like healthcare, environment, women empowerment over the past few years has set the stage for holistic and resilient growth. India is now poised to increase its global standing across the board, be it infrastructure building, defence capabilities or space programmes.
As the PM put it, “The mood of the nation resonates with the vision of a developed India.” By 2047, the collective aspiration is to see India as a leading power across economic, strategic and technology realms – a vision of Viksit Bharat.
Challenges still remain, the government’s targeted policies, growing investments and entrepreneurial industry have put the economy firmly on track to achieve its full potential. From startups to space missions, infrastructure builds to green technologies, India’s rising global stature will be powered by the twin engines of economic growth and strategic autonomy.