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India's Path to a $5 Trillion Economy by 2047

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Rafia Tasleem
New Update
India's Path to a $5 Trillion Economy by 2047

India's journey to become a $5 trillion economy by 2047, a vision set by Prime Minister Narendra Modi, is gaining momentum. The nation, currently boasting a Gross Domestic Product (GDP) of $3.7 trillion, is projected by global agencies to reach this target by the fiscal year 2027-28, potentially propelling it to the position of the world's third-largest economy.

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Minister's Confidence in Early Achievement

Minister of State for Finance Pankaj Chaudhary, however, believes that India might reach this milestone even sooner. During the 'Amrit Kaal,' a term referring to the period leading up to India's 100th year of independence in 2047, Chaudhary predicts the Indian economy will cross the $5 trillion threshold. He emphasized the significance of the Indian rupee's strength in realizing this aim, which he associates with broader economic stability.

India's GDP Growth Over Decades

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Reflecting on the economic journey so far, the Indian economy has witnessed significant growth over the decades. The GDP escalated from $189 billion in 1980-81 to $2.67 trillion in 2020-21. The minister further underlined the importance of the exchange rate, a factor that critically determines India's GDP size on a global scale.

Economy's Structure and Contributions

India's market-based economy monitors progress through market-determined GDP and exchange rates. The contributions of various sectors to the nominal GDP in the fiscal year 2022-23 show a diversified economic structure. The agriculture sector contributed 18.4%, industry provided 28.3%, and services, the largest contributor, accounted for 53.3%.

As India stands on the brink of becoming a $5 trillion economy, the anticipation and confidence within the economic corridors of the country are palpable. This economic leap will not only mark a significant milestone in India's financial history but also set a precedent for emerging economies worldwide.

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