Will India become a $7 trillion economy by 2030?

According to V Anantha Nageswaran, Chief Economic Advisor (CEA), the Indian economy could end FY23 with a GDP of $3.5 trillion at current prices. In all possibilities, the GDP could cross the $7 trillion mark by 2030, according to the Chief Economic Advisor (CEA), V Anantha Nageswaran. He also underlined the felicity with which India handled the 2022 global headwinds despite the uncertain times looming around us and the plethora of unforeseen factors. He believes that are various possible paths for the economy to partake. 

India has embarked onto the year 2023 in the backdrop of a continuing Russia-Ukraine conflict. Given how Russia is one of the major oil producers and suppliers to India. This raises subtle global issues of diplomacy even as it makes cheap oil available to India. While India and Russia agreed to trade in Indian Rupees in a move that substantially benefits the trade deficit, one can never anticipate the turn of events that could take place in light of a ceasefire, or the Russian economy being completely crippled. These are the X factors.

Another uncertain variable that makes the economy’s future challenging is the Chinese plan to open-up to the world economy after nearly 3 years. This will happen post Lunar New Year celebrations. There is expected to be a surge in demand for oil and gas, which could lead to the fossil fuel prices rising. There is also the risk of advanced economies of the US, UK and the EU facing receding growth in the coming quarters as a result. One supporting factor, according to V Anantha Nageswaran, is the gains for the rupee from topping out of interest rates in the US. That is likely to be a big boost in the light of imported inflation.