New Delhi, Jan 29 (Mayank Nigam) On the back of strong economic activities stemming from reforms and measures taken by the government over the last 10 years, Indian economy is expected to grow at closer to 7% in the financial year 2024-25, said a report from the Finance Ministry days ahead of the Union Budget. Finance Minister Nirmala Sitharaman is set to present the interim Budget on February 1, 2024. The report titled ‘The Indian Economy: A Review’ said that in the next three years India is expected to become the third-largest economy in the world, with a GDP of US$ 5 trillion. “The government has, however, set a higher goal of becoming a ‘developed country’ by 2047.
With the journey of reforms continuing, this goal is achievable,” the report said. The report released on Monday takes stock of the state of the Indian economy and its journey in the last 10 years and offers a brief sketch of the outlook for the economy in the coming years. . “This (review report) is not the Economic Survey of India prepared by the Department of Economic Affairs. That will come before the full budget after the general elections,” the report noted at the outset. The report said that it now appears very likely that the Indian economy will achieve a growth rate at or above 7% for the current financial year 2023-24.
“It now appears very likely that the Indian economy will achieve a growth rate at or above 7% for FY24, and some predict it will achieve another year of 7% real growth in FY25 as well. If the prognosis for FY25 turns out to be right, that will mark the fourth year post-pandemic that the Indian economy will have grown at or over 7%,” the key economic report said. The report noted that the ongoing reforms will be more purposeful and fruitful with the full participation of the state governments. “The participation of the states will be fuller when reforms encompass changes in governance at the district, block, and village levels, making them citizen-friendly and small business-friendly and in areas such as health, education, land and labour in which states have a big role to play,” it said.