India set to be world’s 3rd largest economy by 2027-28: FM
GANDHINAGAR: Finance minister Nirmala Sitharaman said on Wednesday that India is poised to become the world’s third largest economy, with a GDP of over $5 trillion by 2027-28 on the back of a strong foundation laid by Modi government over last nine years, through measures such as direct benefit transfer, financial inclusion and digital payments.
At the Vibrant Gujarat Summit, the minister also said during the current government’s two terms, a spirit of partnership had developed between the Centre and states, reversing the earlier “default setting” of “give for the union and take for states”.
“From 2014, the Planning Commission has been revamped and the NITI Aayog, which is more driven towards policymaking and guidance. It is a partnership with the states – a partnership so that states also aspire and their aspirations find (space) in the scheme of things of the Centre. It is also about working together with the states for strengths that they have and to make sure that through programmes such as aspirational districts, you leverage the partnership of states and strengthen challenges to turn them into strengths of the states,” she said.
With a GDP of roughly $3.4 trillion, India is currently the fifth-largest economy in the world, after the US, China, Japan and Germany. The FM said that India is on course to achieve a GDP of $30 trillion by 2047, while making it inclusive for citizens.
Sitharaman said India is on track to become an in-house producer of semiconductors and EV adoption is happening in a big way and argued that India had been a large recipient of foreign direct investment (FDI) in recent years. Between April 2000 and March 2023, India attracted $919 billion FDI, of which 65%, or $595 billion, came during the last eight-nine years, she said.
“FDI is coming in, it is like water, it flows to the lower ebb, where policy brings in greater certainty, convenience, ease of doing business. Of course disruptions of higher US Fed rate and other things can divert it elsewhere, but despite that we have been getting a flow of FDI. It is not only coming for manufacturing but also for the service sector,” she said.
At the Vibrant Gujarat Summit, the minister also said during the current government’s two terms, a spirit of partnership had developed between the Centre and states, reversing the earlier “default setting” of “give for the union and take for states”.
“From 2014, the Planning Commission has been revamped and the NITI Aayog, which is more driven towards policymaking and guidance. It is a partnership with the states – a partnership so that states also aspire and their aspirations find (space) in the scheme of things of the Centre. It is also about working together with the states for strengths that they have and to make sure that through programmes such as aspirational districts, you leverage the partnership of states and strengthen challenges to turn them into strengths of the states,” she said.
With a GDP of roughly $3.4 trillion, India is currently the fifth-largest economy in the world, after the US, China, Japan and Germany. The FM said that India is on course to achieve a GDP of $30 trillion by 2047, while making it inclusive for citizens.
Sitharaman said India is on track to become an in-house producer of semiconductors and EV adoption is happening in a big way and argued that India had been a large recipient of foreign direct investment (FDI) in recent years. Between April 2000 and March 2023, India attracted $919 billion FDI, of which 65%, or $595 billion, came during the last eight-nine years, she said.
“FDI is coming in, it is like water, it flows to the lower ebb, where policy brings in greater certainty, convenience, ease of doing business. Of course disruptions of higher US Fed rate and other things can divert it elsewhere, but despite that we have been getting a flow of FDI. It is not only coming for manufacturing but also for the service sector,” she said.