Decade-long Economic Assessment by the Finance Ministry | 28 Feb 2024

Source: TH

Ahead of the Interim Budget for 2024-25 the Finance Minister presented a 10-year review of the Indian economy.

• Growth Projection: The review predicts that India’s GDP will grow close to 7% in 2024-25, with the potential to go “well above” 7% by 2030.
  • The economy is expected to expand from about $3.7 trillion this year to $5 trillion in three years, making it the world’s third-largest, and could even reach $7 trillion by 2030.
  • Two Growth Phases: The review divides India’s growth story into two phases:
    • 1950-2014 and a “decade of transformative growth” since 2014.
    • It highlights, the state of the economy was “far from encouraging” due to structural constraints, tardy decision-making, and high inflation.
    • However, post-2014 reforms have restored the economy’s ability to grow healthily, making India the fastest-growing G-20 nation.
  • Qualitative Superiority: The review asserts that India’s 7% growth (when the world grows at 2%) is “qualitatively superior” to the 8% - 9% achieved during the previous era when the global economy grew at 4%.

Read More: The Indian Economy: A Review (Part I and Part II)