India can aspire to become $7 trillion economy by 2030: FinMin report
New Delhi: Stating that it is ’eminently’ possible for the Indian economy to grow at a rate above 7% on the strength of financial sector and structural reforms, a Finance Ministry report on Monday said that India can aspire to become a US$ 7 trillion economy by 2030.
Noting the internal strength of the economy, the report titled ‘Indian Economy – A Review’ and prepared by Chief Economic Adviser (CEA) V. Anantha Nageswaran ahead of the interim Budget said that only the elevated risk of geopolitical conflicts is an area of concern.
“Priority areas for future reforms include skilling, learning outcomes, health, energy security, reduction in compliance burden for MSMEs, and gender balancing in the labour force. Furthermore, under a reasonable set of assumptions with respect to the inflation differentials and the exchange rate, India can aspire to become a USD 7 trillion economy in the next six to seven years (by 2030),” the report said ahead of the interim Budget on February 1.
The report noted that this will be a significant milestone in the journey to delivering a quality of life and standard of living that match and exceed the aspirations of the Indian people.
The report highlighted that 10 years back India was the 10th largest economy in the world with a GDP of US$ 1.9 trillion at current market prices but today it the 5th largest with a GDP of US$ 3.7 trillion.
“This ten-year journey is marked by several reforms, both substantive and incremental, which have significantly contributed to the country’s economic progress. These reforms have also delivered an economic resilience that the country will need to deal with unanticipated global shocks in the future,” the report said.
The report projected that in the next three years India would become the third-largest economy in the world, with a GDP of USD 5 trillion.
Besides taking stock of the state of Indian economy over the last 10 years, the Finance Ministry report also offers a brief sketch of the outlook for the economy in the coming years.
“This (review report) is not the Economic Survey of India prepared by the Department of Economic Affairs. That will come before the full budget after the general elections,” Nageswaran noted at the outset of the report.