India's Finance Ministry Targets $7 Trillion Economy by 2030

31 Jan, 2024

India's Finance Ministry Targets $7 Trillion Economy by 2030

According to insights shared in 'Indian Economy - A Review,' India has sustained robust growth for the third consecutive year, showcasing its economic resilience. Prior to the Interim Budget, a report from the Finance Ministry forecasted a promising trajectory for India's economy, projecting a potential milestone of reaching $7 trillion by 2030. Despite global economic challenges with growth rates hovering around 3 percent, India has managed to surpass a 7 percent expansion, as highlighted in the report.

The commitment of India towards fostering consistent economic growth is evident, with resources being allocated for crucial areas like climate change adaptation, resilience building, and emission mitigation. Notably, public sector capital investment has surged over the past decade, while the financial sector remains robust, fostering a conducive environment for economic progression.

Reforms aimed at fortifying the financial sector have led to significant improvements in the balance sheets of banks and corporations, facilitating increased lending across various sectors. The adoption of GST has further streamlined domestic markets, stimulating production efficiency and reducing logistical expenses, as outlined in the report.

Moreover, the comprehensive welfare approach by the Centre is anticipated to bolster the middle class and expand the consumption base, contributing to economic growth. Despite challenges posed by global health crises and climate variability, India's agriculture sector has demonstrated remarkable resilience, according to the report.

Furthermore, India's robust Digital Public Infrastructure (DPI) has revolutionized authentication processes, lowering the cost of electronic Know Your Customer (e-KYC) procedures. With widespread internet access, smartphone penetration, and rapid urbanization, India's e-commerce market has flourished, positioning the nation as the third-largest fintech economy globally, following the USA and the UK.