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Today: Jun 13, 2024

Indian economy set to soar, 7% growth forecasted next fiscal year

1 min read

TLDR:

  • The Indian economy is projected to grow close to 7 percent in the financial year 2024-25, according to the Ministry of Finance.
  • Domestic demand has been the key driver of economic growth in recent years, with private consumption and investment playing a significant role.

The Ministry of Finance in India has announced that the country’s economy is expected to grow close to 7 percent in the financial year 2024-25. This projection is based on the strong domestic demand that has driven economic growth in recent years. The Indian economy grew 7.2 percent in 2022-23 and 8.7 percent in 2021-22. The report also forecasts a growth rate of 7.3 percent for the current financial year, making India the fastest-growing major economy.

The government attributes the robustness of domestic demand to the reforms and measures implemented over the past decade, which have strengthened the supply side of the economy through investments in infrastructure. The report highlights the importance of investment in physical and digital infrastructure, as well as measures that aim to boost manufacturing, in driving economic activity in the country.

The Ministry of Finance expects real GDP growth to be closer to 7 percent in the next financial year. Additionally, the report suggests that there is considerable scope for the growth rate to rise well above 7 percent by 2030. The expanding digital infrastructure, improving institutional efficiency, technological progress, and enhanced ease of doing business are all factors that contribute to the positive outlook for India’s economy.

The report concludes by stating that India is expected to become the third-largest economy in the world within the next three years, with a GDP of USD 5 trillion. Furthermore, it asserts that India can aspire to become a USD 7 trillion economy by 2030. The firm growth forecasts, manageable inflation levels, political stability, and the central bank’s monetary policy have all contributed to the positive outlook for the Indian economy.