Just a few more years... India to become $7 trillion economy by 2031

 | 
aa

India's economy is running at a fast pace despite all the challenges. India's economic growth has been acknowledged by big companies around the world, global agencies and the World Bank.

aa

Indian Economic Growth: India's economy is running with a fast pace despite all the challenges. India's economic growth has been acknowledged by big companies around the world, global agencies and the World Bank. Now the rating agency Crisil has said a big thing about India's economy in its report.

The size of the Indian economy will be $ 7 trillion by 2031. During this period, the average annual growth rate of the country's GDP will be 6.7 percent. The report further said that the annual growth rate from FY 2025 to FY 2031 will be similar to the average growth rate of 6.6 percent in the decade before the epidemic. The increase is due to increase in capital expenditure and productivity.

What will be the GDP

The report estimated that India's gross domestic product (GDP) growth rate in the current financial year is estimated to be 6.8 percent. This is due to high interest rates and strict lending rules. This has affected urban demand. The ET-Crisil India Progress report said that the impact of the efforts being made by the central government to reduce the fiscal deficit should also be seen on growth.

Inflation based on Consumer Price Index (CPI) is estimated to average 4.5 per cent in 2024-25, lower than last year's average of 5.4 per cent. The report identified weather conditions and geopolitical uncertainties as the main risks to growth and inflation. The report said kharif sowing has been higher this year but the impact of excess and unseasonal rains needs to be ascertained. Adverse weather conditions continue to pose risks to food inflation and farm incomes in the remaining period of the current financial year.

According to the report, any escalation in geopolitical tensions could disrupt supply chains, disrupt trade and push up oil prices. This may have an impact on inflation and increase input costs. The report estimated that India's current account deficit will remain in the safe zone due to strong services exports and remittance inflows, although it is expected to increase to 1 per cent of GDP during 2024-25 compared to 0.7 per cent in 2023-24.