FinMin report: India can be $7 trillion economy by 2030

New Delhi, January 29

Due to steps taken by the government since 2014, the Indian economy is projected to grow close to 7 per cent in the 2024-25 financial year, the Finance Ministry said in its monthly economic review. This will mark the fourth year of nearly 7 per cent growth in succession and compares extremely favourably as compared to low global growth.

India’s economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. It is expected to grow 7.3 per cent in the current financial year 2023-24, remaining the fastest-growing major economy, said the review. If the growth rate holds, India can aspire to become a $7 trillion economy in the next six to seven years (by 2030), it said.

The review said there was considerable robustness in domestic demand. This extended to both the private consumption and investment sectors and has been due to reforms and measures implemented by the government over the last 10 years, said the report. “The supply side has also been strengthened with investment in infrastructure — physical and digital — and measures that aim to boost manufacturing. These have combined to provide an impetus to economic activity in the country,” observed the review.

“Accordingly, in FY25, the real GDP growth will likely be closer to 7 per cent. There is, however, considerable scope for the growth rate to rise well above 7 per cent by 2030,” added the report.

“The rapidly expanding digital infrastructure is continuously improving institutional efficiency. Technological progress is picking up pace with rising collaboration with foreign partners in the production of goods and services. Decisive steps have been taken to speed up human capital formation. Finally, the overall investment climate is increasingly becoming more favourable with sustained enhancement in the ease of doing business,” it said.