February 1, 2023
India is expected to become a US$ 5 trillion economy by 2026 backed by its potential to grow at 6.5-7% per annum, according to the country’s Chief Economic Advisor (CEA) V Anantha Nageswaran. Additionally, he also said that the country can become a US$ 7 trillion economy by 2030, depending on exchange rate fluctuations.
By March 2023, the Indian economy is expected to reach US$ 3.5 trillion. According to the CEA, India’s GDP in dollar terms has grown at an annual average rate of 9% over the last three decades. Nageshwaran said that this is a healthy growth rate, as the rupee has depreciated against the dollar over the past 30 years.
He further mentioned that if the rupee appreciates against the US Dollar over the next few years then India will be in a position to achieve that GDP in dollar terms, even higher than 9%.
Nageshwaran forecasts India’s growth rate for FY25 to be pegged at 6.5%, provided that macroeconomic conditions do not negatively influence it. Economic growth will be powered by supportive government decisions towards policies, investments, and private sector decisions.
Source: Economic Times