Indian Economy Poised For 7% Growth In Fiscal Year 2024-25: Ministry Of Finance

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The Indian economy is anticipated to achieve nearly 7% growth in the fiscal year 2024-25, as per a Ministry of Finance report released on Monday. This optimistic outlook is attributed to robust domestic demand, which has driven growth rates exceeding 7% over the past three years.

Recent economic performance showcases substantial growth, with a 7.2% expansion in 2022-23 and an impressive 8.7% growth in 2021-22. The current fiscal year, 2023-24, is projected to witness a growth rate of 7.3%, solidifying India’s position as the fastest-growing major economy.

The report attributes the strength in domestic demand to government reforms and initiatives implemented over the past decade, particularly in infrastructure investment and manufacturing. These measures have bolstered economic activity, driven by private consumption and investment.

It predicts that real GDP growth will likely approach 7% in FY25, with the potential for even higher growth rates by 2030. The report underscores the expansion of digital infrastructure, improvements in institutional efficiency, technological progress, human capital formation, and an increasingly favorable investment climate as key factors driving India’s economic trajectory.

Furthermore, the report envisions India becoming the third-largest economy globally within the next three years, reaching a GDP of USD 5 trillion. It also sets a more ambitious goal for India to aspire to become a USD 7 trillion economy by 2030, aiming to enhance the quality of life and standard of living for its citizens.