According to a tweet from the finance minister’s office, the Indian economy has witnessed a remarkable growth of more than 87% in US dollar terms over the course of nine years leading up to 2023.
India’s GDP has now reached US$ 3.75 trillion in 2023, a significant increase from around US$ 2 trillion in 2014. This substantial growth has propelled India from being the world’s 10th largest economy to the 5th largest, earning recognition for India as a bright spot in the global economy, as stated by Finance Minister Nirmala Sitharaman.
V Anantha Nageswaran, the chief economic advisor, has expressed that India is on track to become the third-largest economy globally by 2027. Nageswaran emphasized that India’s ascent from 10th place in 2014 to 5th place in 2023 has increased its influence in the global economy. Furthermore, India’s average contribution to the global GDP has risen from 1.1% in 1998-2007 to 5% in 2010-2019, with an estimated increase to 6% in 2021-2028.
Previously, Nageswaran stated that both the Reserve Bank of India and the Ministry of Finance expect a growth rate of 6.5% for the fiscal year 2023-2024 (FY24), with balanced risks.
Moreover, the International Monetary Fund (IMF) has projected India’s GDP growth to be 5.9% in FY24, while S&P and Fitch, rating agencies, have estimated a growth rate of 6%.
The provisional estimates from the National Statistical Office reveal that India’s economic growth in FY23 was 7.2%, slightly lower than the initial advance estimates of 7%. The chief economic advisor anticipates that the final growth figure for FY23 will be revised higher.
Regarding real GDP growth, India experienced a growth rate of 6.1% in the fourth quarter of the previous fiscal year, surpassing the expectations of most analysts. This growth was driven by a strong agricultural sector, a thriving services sector, a moderate increase in manufacturing, substantial government capital expenditure, and favorable baseline conditions. Notably, net exports played a significant role in boosting the overall growth rate.
Although the growth rate in FY23 was slower compared to the 9.1% recorded in FY22, it still represented an impressive growth of 10.1% when compared to the pre-pandemic year, FY20.
