The Indian government is optimistic about achieving the goal of making India a $5 trillion economy in the near future, with Minister of State for Finance, Pankaj Chaudhary, expressing confidence in the trajectory during the ‘Amrit Kaal,’ aiming to transform into an advanced economy by 2047.

Chaudhary highlighted the pivotal role of a robust rupee, stemming from macroeconomic stability, in crossing the $5 trillion milestone. Reflecting on the economic journey, he pointed out that in 1980-81, India’s economy measured $189 billion, marking substantial growth to $326 billion within the following decade. By the turn of the century in 2000-01, the Gross Domestic Product (GDP) had further risen to $476 billion.

As of 2022-23, India, known for its rapid economic growth, boasted a GDP of $3.7 trillion. Minister Chaudhary emphasized the government’s ambitious target of transforming into an advanced economy by 2047.

The International Monetary Fund (IMF) has projected India to attain the status of a $5 trillion economy with the third-largest GDP by 2027-28. Providing historical context, Chaudhary noted that India’s GDP experienced significant growth from $1.71 trillion in 2010-11 to $2.67 trillion in 2020-21.

India’s economic model revolves around being a market economy, where market-determined factors such as GDP and exchange rates play a crucial role. Chaudhary highlighted that both domestic and international markets influence India’s economic indicators and the contributions of various sectors to the GDP.

In terms of sectoral contributions, the breakdown for 2022-23 revealed agriculture, industry, and services constituting 18.4%, 28.3%, and 53.3%, respectively. Additionally, Chaudhary emphasized the government’s role in fostering economic progress through strategic policy interventions.

The minister’s statements underscore India’s commitment to sustained economic growth, leveraging its market dynamics and strategic interventions to realize the vision of becoming a $5 trillion economy and subsequently evolving into an advanced economic entity by 2047.