India Needs To Grow At 8 Per Cent For Two Decades To Become Developed Nation By 2047: Economic Survey 2025

Addressing the slowdown in the economy, CEA Nageswaran pointed out that India ‘still remains the fastest growing large economy in the world’.

Meanwhile, the survey also cautioned of a possible correction in the Indian markets in 2025.

Source : ABPLIVE AI

Chief Economic Adviser, V Anantha Nageswaran, on Friday said that India needs to grow at a faster pace to become a developed country by 2047. The official said that the domestic economy needs to be prepared to capitalise on the conducive global situations to grow further.

Explaining the slowdown in economic growth, the CEA said global factors played a key role. The Economic Survey 2025, released on Friday in the Parliament, noted that India needs to maintain a growth rate of 8 per cent for up to two decades to achieve the target of becoming a developed nation by 2047.

The survey projected Indian economy to grow at 6.4 per cent in the current 2024-25 fiscal year (FY25). Meanwhile, the growth estimates for the 2025-26 fiscal year (FY26) range between 6.3 per cent to 6.8 per cent.

Addressing the slowdown in the economy, Nageswaran pointed out that India ‘still remains the fastest growing large economy in the world’. Talking to the media, the CEA said, “Whenever the global exports growth picks up, in those years, it contributes another 0.5 to 1 per cent additional growth, which will take it (India's economic growth) to 7.5-8 per cent, and the agriculture sector itself can contribute one per cent of additional GDP growth.”

'Meaningful' Correction In Stock Markets Possible: Survey

Meanwhile, the survey also cautioned of a possible correction in the Indian markets in 2025. The document said that any correction in the US markets could result in a ripple effect in the domestic markets. Notably, an increasing number of young investors have been participating in the markets post the COVID-19 pandemic, the survey observed.

Investor participation stood at 4.9 crore in the 2019-20 fiscal year (FY20) and climbed to 13.2 crore as of December 31, 2024, it added. "Elevated valuations and optimistic market sentiments in the US raise the likelihood of a meaningful market correction in 2025. Should such a correction occur, it could have a cascading effect on India, especially given the increased participation of young, relatively new retail investors. Many of these investors that have entered the market post-pandemic have never witnessed a significant and prolonged market correction," the survey stated.