Under the ‘Viksit Bharat’ initiative, the Indian government aims to transform the country into a developed economy by 2047. To achieve this, the Finance Ministry stated that India must sustain an annual growth rate of around 8% over the next decade, Reuters reported. This growth is expected to be driven by domestic demand and increased investments.
In a June response to a parliamentary committee, the ministry emphasized the need for 8% real GDP growth annually, despite rising global geopolitical uncertainties. For FY 2024–25, India’s growth is estimated between 6.3% and 6.8%, lower than the 9.2% achieved in FY 2023–24. Economists agree that consistent 8–9% growth is essential for reaching the 2047 goal.
The ministry also highlighted the need to raise the investment rate to 35% of GDP from the current 31%. Meanwhile, trade challenges persist, including new US tariffs of up to 50%, which could reduce growth by 40 basis points. India continues to focus on boosting labour-intensive exports like textiles and leather.
