Indian Economy: India Would Become a $5 Trillion Economy by 2026-27: CEA V Anantha Nageswaran

Chief Economic Adviser (CEA) V Anantha Nageswaran said Tuesday India will reach a $5 trillion economy by 2026-27 and $10 trillion by 2033-34. Speaking at an event organized by UNDP India, Nageswaran said India is relatively better placed than other emerging economies.

“It looks optimistic on the face of it, even ambitious, but if we get to $5 trillion by 2026-27.

“We’ve got $3.3 trillion now, it’s not that difficult a goal to reach. Then, if you just assume nominal GDP growth in dollars at 10 percent, you get $10 trillion by 2033-34, and that’s a further doubling rate,” he said.

In 2019 Prime Minister Narendra Modi planned to turn India into a $5 trillion economy and global powerhouse by 2024-25.

The CEA said climate labeling of the budget was required.

“GDP is the worst measure of economic activity, but for everyone else. Because anything else you take has its own limitations and serious subjectivity,” he noted.

The World Bank cut India’s economic growth forecast for the current fiscal year to 7.5 percent as rising inflation, supply chain disruptions and geopolitical tensions slow the recovery.

India’s economy grew 8.7 percent in the last fiscal year (2021-22) compared to a 6.6 percent contraction in the previous year.

In its third monetary policy of 2022-23, the Reserve Bank maintained its GDP growth forecast of 7.2 percent for the current fiscal year, but warned of the negative impact of geopolitical tensions and a slowdown in the global economy.

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