India’s Economy: PHDCCI Predicts GDP Surpassing USD 4 Trillion in 2024-25

In a recent report released by way of the PHDCCI, it is predicted that India’s GDP is poised to exceed USD 4 trillion within the financial year 2024-25, with an additional increase predicted to propel it to USD 5 trillion by using the financial year 2026-27. This projection signals a big leap in India’s financial prowess, underscoring its resilience amid worldwide challenges.

The report emphasizes the need for vigilance and adaptability in the face of potential risks from the global economy. Recognizing India’s robust economic performance, the report envisions the country attaining the status of a developed economy by 2047 under the ‘Viksit Bharat‘ initiative.

SP Sharma, deputy general secretary of PHDCCI, recommends focusing on informal sectors to ensure the smooth transition of reforms at the grassroots level. He emphasizes the importance of strengthening the banking system to support small businesses, to enable them to expand to match the demand curve. Based on key economic indicators such as GDP growth, export growth, GDP retention, gross investment and debt-to-GDP ratio, the analysis covers four distinct periods: the first years ( 2018, 2019), pre-pandemic years ( 2020, 2021) , and post-pandemic years (2022, 2023), and future prospect years (2024, 2025). PHDCCI places these economic indicators at this juncture, providing a comprehensive understanding of the trajectory of the Indian economy.

In terms of retail inflation, the report estimates that by 2024 it will be around 4.5 percent. In addition, the PHDCCI expects the Reserve Bank of India to cut the repo rate by 100 basis point, aiming to bring it down to 5.5 per cent by 2024.

When it comes to identifying sectors with promising growth, the sector focuses on agriculture and food processing, infrastructure, textiles and clothing, pharmaceuticals, defense manufacturing, electronics and fintech. These projects are expected to play an important role in boosting India’s economic growth in the coming years.

In short, the PHDCCI report paints an optimistic picture of the future of the Indian economy, showing tremendous growth and resilience. Recommending policy actions, highlighting informal activities and identifying areas of growth are all the way to navigate the ever changing global economic environment As India progresses in its economic growth journey, these insights provide valuable perspectives for policymakers, agencies and stakeholders.