In 2023, the key indicator of development has risen to $3.75 trillion from $2 trillion.
In 2023, India’s Gross Domestic Product (GDP) will reach $3.75 trillion. This is up from $2 trillion in 2014. Nirmala Sitharaman, Union Finance Minister’s Office confirmed the development in a Tweet.
India’s Finance Ministry stated that India was the fifth-largest economy in the entire world. India’s GDP was $3,737 Billion in current prices, which is lower than the USA ($26.854), China (19.374 Billion) and Germany (4,309 Billion).
India’s GDP, at current prices, is higher than the UK (3159 billion dollars), France (2924 billion dollars), Canada ($2,089 milliards), Russia ($1,840 millions), and Australia (1550 million dollars) at current price.
The tweet stated: “India’s GDP will reach $3.75 trillion by 2023 from $2 trillion in 2014. Moving from the 10th to 5th largest economies in the world.” India is now being referred to as a Bright Spot of the global economy.
Moody’s, a ratings agency, forecast the Indian economy would grow between 6 and 6.3 percent in the second quarter of this year. Moody’s forecast is lower than the Reserve Bank of India’s (RBI’s) 8 percent growth prediction last week. Gene Fang, Associate Managing Director at Moody’s Investors Service, told PTI that the growth rate for India is expected to be around 6-6.3% in the first quarter. This is still relatively flat compared to the 6.1% recorded in the last quarter of fiscal 2020-23.
The RBI announced the results of its last-week monetary policy committee meeting, which projected India’s current fiscal GDP growth to be 6.5 percent. The central bank forecasted growth in the June quarter (Q1) at 8 percent, Q2 at 6.5%, Q3 at 6%, and Q4 at 5.7%.
India’s position as the world’s fifth-largest economy was highlighted by the finance minister. According to IMF projections, India surpassed the UK last year and now ranks fifth in the world, behind the US, China Japan and Germany. India ranked 11th in the world’s large economies a decade ago.
Recently, a stronger-than-expected fourth quarter lifted India’s growth to 7.2 per cent in FY23, exceeding the 7 per cent cited in the second advance estimates released in February, underscoring the country’s economic resilience in the face of multiple challenges.
According to the latest estimates of the National Statistical Office, the real GDP growth rate for 2022-2023 is 7.2%, which is higher than the earlier projections of 7 percent.
Government data revealed that the gross domestic product (GDP), which is the country’s total economic output, rose by 6.1 percent in the third quarter of March compared to the same quarter a year ago. This was an acceleration from the upwardly-revised 4.5 percent in the previous quarter. A poll by ET of 20 economists estimated that the median growth for the fourth quarter would be 5.1 percent.
Recent, Dr V Anantha Nageswaran, the Chief Economic Advisor, praised the estimated growth of 7.2 percent in real GDP in 2022-23. He expressed his confidence that the growth would be even higher when the final figures for the fiscal year are frozen at the beginning of 2026. “It was the efforts of people such as you, more than the government, that led to 7.2 per cent growth in real GDP in FY 23, following the 9.1 percent in FY 22,” ANI reported him as saying.
Nageswaran, speaking at an event organized by the Bharat chamber of commerce, said that 7.2 percent GDP growth was “a heartening achievement for both the government and the economy”.
He said: “It was the efforts of people such as you, more than the government, that led to a 7.2 percent real GDP growth in FY 23, following a 9.1 percent in FY 22.”
Nageswaran stated that India’s estimates of GDP growth are presented six different times. “The final estimate for FY23 will be available to us in January or February 2026.” My expectation and belief are that the final number of FY23 will be higher than 7.2% when it is frozen in February, 2026.
Nageswaran stated that this is the first reliable estimation of GDP growth. “As more data becomes available, there will be further revisions to the upside from 7.2 percent.”
Moody’s said on Sunday that the Indian economy was expected to grow by 6-6,3 per cent in the June quarter and warned of the risk of fiscal slippage due to lower-than-expected revenue for the current fiscal.
Moody’s growth estimate is lower than RBI’s 8 percent projection for the first three months.Gene Fang, associate managing director of Moody’s Investors Service, said in an interview with PTI that India’s general government debt is relatively high, at approximately 81,8% of GDP by 2022-23. He also noted the low affordability of debt.
Fang was quoted by PTI as saying, “We expect India to grow at around 6-6.3% in the first three months of this fiscal year. This is relatively flat compared to the 6.1% recorded in the last quarter of fiscal 2022-2023.”