Indian Economy grew over 87% in 9 years: FM Sitharaman

New Delhi, Jun 13: The size of the Indian economy has increased by over 87% in US dollar terms in the nine years to 2023, the government said on Monday. “India’s GDP has reached $3.75 trillion in 2023, from around $2 trillion in 2014; moving from 10th largest to 5th largest economy in the world. India is now being called a Bright Spot in the global economy,” finance minister Nirmala Sitharaman’s office said in a tweet.

 

 

Separately, at an event in Kerala on Monday, chief economic advisor V Anantha Nageswaran said India is set to become the third-largest economy by 2027. India was the 10th largest economy in 2014.

 

 

“India is becoming consequential for the world economy because of our progress from number 10 position to number five,” Nageswaran said. He said India’s average contribution to world GDP rose from 1.1% in 1998-2007 to 5% in 2010-2019 and is estimated to be 6% in 2021-2028. “India’s contribution will only become better if we continue to deliver on our potential and promise.” On Saturday, Nageswaran said that both the Reserve Bank of India and the Ministry of Finance believe 6.5% is the estimated growth for FY24 and the risks to this growth rate are evenly balanced. The International Monetary Fund has estimated India’s GDP growth to be 5.9% in FY24 while rating agencies S&P and Fitch have estimated the GDP to grow at 6%. India’s GDP in real terms grew at 6.1% in the fourth quarter of last fiscal, a pace significantly higher than what most analysts expected. A solid farm sector, buoyant services sector, a moderate pick-up in manufacturing, robust government capex, and a favorable base pushed the quarterly growth. More than anything, net exports boosted the headline figure. With this, the National Statistical Office’s provisional estimates of the economic growth in FY23 came in at 7.2%, as against the advance estimates of 7%. The CEA expects the final growth number for FY23 would be higher when numbers are revised.

 

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The pace of growth in FY23 was slower as compared to the 9.1% recorded in FY22, but it represented a growth of 10.1% over the pre-pandemic year, FY20.