India on course to become USD 5 trillion economy by FY26: CEA

Chief Economic Adviser V Anantha Nageswaran on Tuesday expressed hope that India would become a USD 5 trillion economy by FY26 or the next year on the back of 8-9 per cent sustained growth.

Gross domestic product (GDP) in dollar terms has already crossed USD 3 trillion, he said during the Finance Minister’s post Budget interaction with media. Prime Minister Narendra Modi in 2019 envisioned making India a USD 5 trillion economy and a global economic powerhouse by 2024-25. With this, India would become the third largest economy in the world.

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Indian economy is estimated to grow at 9.2 per cent during the current fiscal while 8-8.5 per cent for the next financial year. As far as USD 5 trillion economy is concerned, India is the fastest growing large economies in the world.

“Depending on how exchange rate move…Indian Rupee would remain stable to strong given what is going on the developed world. If we continue to retain the path of 8-9 per cent real GDP, it would translate into 8 per cent dollar GDP growth. If we extrapolate that we should be at the USD 5 trillion by 2025-26 or 2026-27,” he said.