India To Become $5-Lakh Crore Economy By 2026-27, Says Chief Economic Advisor

V Anantha Nageswaran said India is relatively better placed than other emerging economies at an event organised by UNDP India

V Anantha Nageswaran, chief economic adviser.

Source : Getty

Chief Economic Adviser (CEA) V Anantha Nageswaran on Tuesday said India would become a $5-lakh crore economy by 2026-27 and $10 lakh crore by 2033-34.

Addressing an event organised by UNDP India, Nageswaran said India is relatively better placed than other emerging economies.

"On the face of it, looks optimistic, even ambitious, but if we get to $5 lakh crore by 2026-27. We are now $3.3 lakh crore, it is not such a difficult target to reach. Then if you simply assume 10 per cent nominal GDP growth in dollar terms, then you get to $10 lakh crore by 2033-34 and another doubling with the same rate," he said.

In 2019, Prime Minister Narendra Modi envisioned to make India a $5 lakh crore economy and global powerhouse by 2024-25.

The CEA said there is a need for climate tagging of the Union Budget.

"GDP is the worst measure of economic activities but for all others. Because everything else you take, comes with their own limitations and serious subjectivity," the CEA noted.

The World Bank has cut India's economic growth forecast for the current fiscal year to 7.5 per cent as rising inflation, supply chain disruptions, and geopolitical tensions taper recovery.

India's economy grew 8.7 per cent in the last fiscal year (FY21-22) against a 6.6 per cent contraction in the previous year.

In its third monetary policy of FY22-23, the Reserve Bank of India (RBI) retained its GDP growth forecast at 7.2 per cent for the current fiscal year, but cautioned against negative spillovers of geopolitical tensions and a slowdown in the global economy.