The Ministry of Finance has released a report titled 'The Indian Economy — A review,' predicting that the country's economy is poised to grow at over 7 per cent in the upcoming years.
The report predicts that India will become the world's third-largest economy within the next three years, achieving a gross domestic product (GDP) of $5 trillion.
The growth is expected to be driven by domestic demand, along with supply-side measures such as infrastructure investment and initiatives to boost manufacturing, as per a report by The Indian Express.
Chief Economic Adviser V Anantha Nageswaran, in the preface of the report, highlighted the likelihood of achieving a growth rate of 7 per cent or higher for the fiscal year 2024, with a similar projection for fiscal year 2025.
He also noted the resilience and potential of the Indian economy, considering this a commendable achievement post-Covid pandemic.
However, Nageswaran clarified that the report is not the Economic Survey of India prepared by the Department of Economic Affairs, which typically precedes the full budget presentation after general elections.
The review identifies the elevated risk of geopolitical conflicts as the only area of concern.
Nageswaran outlined three key trends for the coming years: the end of hyper-globalisation in global manufacturing, the rise of artificial intelligence, and the challenge of energy transition.
He pointed out the need to lower logistics costs and invest in product quality to maintain and expand market share.
The report highlighted India's adept handling of the energy transition challenge, walking the fine line between economic growth and reducing carbon emissions.
The review also acknowledged India's improved position to face challenges, citing the government's decade-long efforts in infrastructure development and a healthy financial sector.
Furthermore, the report highlighted the success of Covid management, vaccination efforts, and adept management of crude oil supply in contributing to the quick economic recovery.
As the government addresses long-standing issues such as deficient infrastructure and financial inclusion, the report notes rising aspirations and heightened expectations among the Indian populace.
It concludes that India is now confident in its belief for positive changes, fostering a sense of optimism among its citizens.
Bhuvan Krishna is Staff Writer at Swarajya.
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