India’s economy is projected to surpass USD 4 trillion in the financial year 2024-25 and is expected to reach USD 5 trillion by the FY 2026-27, according to a report by PHDCCI released on Wednesday. Despite global challenges, the report highlights India’s resilient economic performance and anticipates achieving the status of a developed economy by 2047 under the ‘Viksit Bharat’ initiative.
The analysis, based on key macroeconomic indicators, including GDP growth, export growth, gross national savings, total investments, and the debt-to-GDP ratio, covers different periods, including pre-pandemic, pandemic, post-pandemic, and futuristic outlook years. The report underscores the need for vigilant and adaptable policies to mitigate global economic risks.
Deputy Secretary General at PHDCCI, SP Sharma, emphasizes the importance of focusing on the informal sector for sustained economic growth. Additionally, he calls for strengthening the banking system to support small businesses and their capacity expansion in response to demand.
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The report also predicts retail inflation to average around 4.5% in 2024, with an anticipated 100 basis points reduction in the repo rate by the Reserve Bank of India, bringing it to 5.5% by the end of 2024.
PHDCCI identifies promising sectors for growth, including agriculture and food processing, infrastructure, textile and apparel, pharmaceuticals, defense manufacturing, electronics, and fintech.