Following the ups and downs caused by the Covid pandemic, the Indian economy has continued to grow and succeed. Experts now predict that India will experience rapid economic growth this year as well. In addition, India will overtake the United States as the world’s third largest economy in the next decade.
The World Bank recently raised its GDP growth forecast for the country from 6.4% to 6.9%. This estimate shows that the World Bank recognises the positive impact of the current government’s policies and economic reforms. According to World Bank India Director Auguste Tano Coame, India’s economy is resilient due to the country’s strong macroeconomic situation.
Economy booming due to policy reforms
According to government estimates, India will grow by 7% in fiscal year 2022-2023. According to the Ministry of Statistics and Program Implementation, this is a big achievement at a time when most countries around the world are experiencing severe economic hardship.
According to economists, the government’s Production Linked Incentive Scheme (PLI) and PM Gati Shakti policy reforms have been the most effective in accelerating the
Indian economy. PLI has increased production in the country, while the Gati Shakti initiative has increased connectivity. The country has struck the right balance between welfare programmes and infrastructure expansion.
India towards becoming a developed country
In the next five years, India hopes to reduce the cost of transportation from 14% to 8%. This is also expected to facilitate growth. Foreign investment in India is expected to surpass $100 billion for the first time this fiscal year.
Renewable energy, construction, finance technology, automobiles, healthcare, and tourism are expected to grow rapidly as the country’s organised and unorganised sectors expand. India’s goal is to become a developed country by 2047. This target can only be met if the Indian economy grows at an annual rate of about 8%.
