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.
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
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.