India's economy might reach $20 trillion by 2040: Chief Economic Advisor

8 Jun 2022 , 04:51 PM

“The IMF expects India’s GDP to reach $5 trillion by 2026-27, and if the country’s dollar GDP doubles every seven years, we’ll be at $20 trillion GDP by 2040, with a per capita income of close to $15,000,” Nageswaran stated during a press conference today.
 
The COVID-19 outbreak has halted India’s economic progress, as has the harm inflicted by Russia’s invasion of Ukraine, which has sent commodities prices soaring. Over the previous few years, the economy is expected to have scarcely expanded.
 
Despite this, India has emerged from the preceding decade with a restored financial system and a healthy corporate balance sheet, according to a finance ministry official.
 
Meanwhile, the government’s structural reforms may have been temporarily overshadowed by the pandemic and geopolitical conflict, but once these clouds clear, the reforms will begin to show their benefits in boosting India’s potential growth in the coming decade, according to the chief economic advisor.
 
India’s central bank today maintained its prior prediction of 7.2% growth in FY23. It increased the policy repo rate by 50 basis points to 4.9%, as predicted, in order to combat recent spikes in inflation.
 
Governor Shaktikanta Das said in a statement that statistics for April and May indicated that India’s economic recovery “remains solid, with growth impulses becoming increasingly broad-based.”
 
The World Bank has reduced India’s growth prediction for the current fiscal year to 7.5%, down 1.2 percentage points from its earlier estimate of 8.7 percent.