India's Economic Ascent: Projected $5 Trillion Milestone and Third-Largest GDP by 2027-28 Amidst Amrit Kaal Optimism

The International Monetary Fund (IMF) projects that India is poised to attain the status of the third-largest GDP by 2027-28. Minister of State for Finance Pankaj Chaudhary envisions India as a $5 trillion economy in the near future, aligning with the nation's aspiration to evolve into an advanced economy by 2047. Echoing the IMF's forecast, Chaudhary confidently states, "India will become a $5 trillion economy early in the 'Amrit Kaal' on the path to achieving the goal of becoming an advanced economy by 2047."

In a Lok Sabha reply reported by PTI, Chaudhary elucidates that the robust rupee, a consequence of macroeconomic stability, will play a pivotal role in propelling India's economy across the $5 trillion GDP threshold. He underscores the government's unwavering commitment to achieving both the $5 trillion economy milestone and the status of an advanced economy during the auspicious period of Amrit Kaal.

As of the conclusion of the fiscal year 2022-23, India's GDP stands at $3.7 trillion. Reflecting on the economic journey, the Indian economy's size was a mere $189 billion in 1980-81, ascending to $326 billion within a decade. By 2000-01, the GDP surged to $476 billion, reaching $1.71 trillion in 2010-11, and further escalating to $2.67 trillion in 2020-21.

Chaudhary accentuates the pivotal role of the exchange rate in determining India's global GDP stature. Emphasizing India's status as a market economy, he asserts that economic progress is monitored through market-determined GDP and exchange rates. Both domestic and international markets wield considerable influence in shaping India's GDP, exchange rates, and the contributions of diverse sectors to the overall GDP.

Examining the sectors, the nominal GDP contributions for agriculture, industry, and services in 2022-23 were 18.4%, 28.3%, and 53.3% respectively. Chaudhary underscores the government's integral role in fostering economic progress through policy interventions and measures outlined in annual budgets.

Enumerating initiatives over the past nine years, Chaudhary highlights the implementation of the Insolvency and Bankruptcy Code, the recapitalization of public sector banks, the introduction of the Goods and Services Tax (GST), corporate tax reductions, increased effective capital expenditure, the inception of the Production Linked Incentive (PLI) scheme across 14 sectors, continuous liberalization of the Foreign Direct Investment (FDI) regime, and advancements in digital infrastructure development.