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Notice (8): Undefined variable: urlPrefix [APP/Template/Layout/printlayout.ctp, line 8]latest-news-updates/india-will-soon-become-third-largest-economy-does-it-matter.html"/> LATEST NEWS UPDATES | India will soon become third largest economy. Does it matter? | Im4change.org
Resource centre on India's rural distress
 
 

India will soon become third largest economy. Does it matter?

Subhash Chandra Garg, Deccan Herald

Given the depreciating USD, India’s $5tn GDP goal of 2019-20 equals $5.74tn in 2022-23, and at further 3 per cent depreciation, it would need to be $6.65tn in 2027-28. 

The Government of India announced in 2019-20 the goal of a $5 trillion GDP by 2024-25. India’s GDP was $2.84 trillion that year, needing a $2.16 trillion gap to cover in five years. India’s GDP reached $3.39 trillion in 2022-23 managing to cover only $0.55 trillion. We have a $1.69 trillion distance (three times that of $0.55 trillion) to fathom. The government has not formally pushed back its $5 trillion GDP goal to any particular year. The Chief Economic Adviser (CEA) has talked about 2026-2027. The IMF projects India to go past the $5 trillion mark in 2027-28.

The conclusion is clear. India will prosper and develop when the per capita income of average Indian will grow to reach higher middle-income levels, if not the high-income level — and not when its GDP becomes the third largest.

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