A pedestrian talks on a mobile phone while watching a digital screen relaying the budget speech by India's Finance Minister Nirmala Sitharaman on the facade of the Bombay Stock Exchange (BSE) in Mumbai, February 1, 2021.
Punit Parampe | AFP (via Getty Images)
The economy is expected to grow by more than 7% in fiscal 2024, the Ministry of Finance said in a report released on Monday. India's fiscal year begins on April 1st and ends on March 31st.
If this year's target is achieved, India's GDP growth rate will be 7% for the third consecutive year.
The country's GDP currently stands at $3.7 trillion.
India's chief economic advisor V. Ananta Nageswaran said the government's goal is to become a developed country by 2047.
“The strength we are seeing in domestic demand – private consumption and investment – has its origins in the reforms and policies implemented by the government over the past decade,” Nageswaran said in the report, highlighting the key drivers of India's growth. explained.
He said investments in both physical and digital infrastructure helped boost the supply side and manufacturing. As a result, “real GDP growth is likely to be close to 7%” in fiscal 2025, he added.
The document released on Monday is not the Economic Survey of India, prepared by the economy ministry ahead of the Union Budget.
The Union Budget is expected to be announced only after the general elections in April-May this year. The interim budget will be presented by Finance Minister Nirmala Sitharaman on Thursday, but it is unlikely to include any major changes to spending or taxation.
According to Goldman Sachs, India is on track to become the world's second-largest economy by 2075, overtaking Japan and Germany as well as the United States.
Currently, India is the world's fifth largest economy. USA, China, Japan, Germany.
Indian stocks are off to a strong start this year.
The Nifty 50 index rose more than 20% in 2023 after posting record gains last year. This month, the index exceeded 22,000 for the first time.
Growing optimism about the growth prospects of the world's most populous country, improved liquidity and increased domestic participation are key factors driving the rally.
Expectations for further policy continuity were also a driving force behind the rise as India prepares for general elections in April and May.
Investors expect the Reserve Bank of India to cut interest rates this year, possibly in the second half of the year, which is likely to boost stock markets and also boost economic spending.
