In the recently released ‘Indian Economy – A Review,’ promising indicators suggest that India is on a steadfast trajectory of robust economic growth, maintaining this momentum for the third consecutive year. As the nation anticipates the Interim Budget, the Finance Ministry’s report on Monday projects a potential economic surge that could propel India’s GDP to an impressive $7 trillion by 2030, setting the stage for significant global economic leadership.
The report highlights India’s remarkable commitment to ensuring consistent economic growth, citing it as a crucial driver for generating resources needed for climate change adaptation, building resilience, and mitigating emissions. In a global scenario where the economy struggles to maintain a growth rate exceeding 3 percent, India has surpassed a commendable 7 percent expansion.
Over the past decade, India’s economic ascent has been fueled by a surge in public sector capital investment, a robust and healthy financial sector, and a noteworthy growth in non-food credit. The reforms implemented to fortify the financial sector have effectively cleansed the balance sheets of banks and corporates, empowering banks to resume lending to all sectors of the economy. The adoption of the Goods and Services Tax (GST) has further unified domestic markets, incentivizing production on a larger scale, enhancing economic efficiency, and reducing logistics costs.
The report underscores the Centre’s comprehensive welfare approach, forecasting its contribution to the expansion of the consumption base by enlarging the middle class. Despite challenges posed by the global health crisis and climate variability, the agriculture sector has exhibited remarkable tenacity and resilience, further solidifying India’s economic foundation.
India’s Digital Public Infrastructure (DPI) emerges as a key player in transforming the authentication ecosystem, significantly reducing the cost of conducting electronic Know Your Customer (e-KYC). Combined with widespread internet connectivity, smartphone proliferation, and rapid urbanization, the country’s e-commerce market has witnessed an unprecedented surge, positioning India as the third-largest fintech economy globally, trailing only the USA and the UK.
India’s economic success story is not just a local phenomenon but a beacon of hope on the global stage. With a commitment to sustainable growth, financial reforms, and innovative digital infrastructure, India is poised to emerge as a powerhouse, steering towards the coveted $7 trillion GDP mark by 2030.