Having failed to grow in the first 40 years of independence, Indian economy is on a stage of "take off" growing at 7-8 per cent and is expected to be the world's third largest by 2030 with GDP worth $10 trillion, a senior government official said today
"In the first 40 years of independence, the country hardly grew at 3.5 per cent and today, 7-8 per cent is the norm. Good days are ahead and lot of good work is happening in the economy which is on a stage of take off where Indians can legitimately hold their heads high, that is the challenge. That is also the opportunity, " Economic Affairs Secretary Subhash Chandra Garg said today.
He was speaking at a function to mark the platinum jubilee celebrations of the Institute of Cost Accountants of India.
"Eight per cent growth is very much achievable... If we keep that... we can look forward to be an Indian economy of $10 trillion which would be the third largest economy in the world," Garg said.
Recently World Bank data showed that the country emerged as the sixth largest economy in the world, surpassing France, in 2017.
In 2017, India became the sixth largest economy with a Gross Domestic Product (GDP) of $2.59 trillion, relegating France to the seventh position, according to the data.
"We expect the Indian economy to be a $1 trillion digital economy by 2022 and going forward... possibly by 2030, the digital economy would be half of the total economy," the Secretary said.
The country's economy grew at a seven-quarter high of 7.7 per cent in the three months ended March 2018, helped by higher government spending and investments. There were indications of growth also was aided by small private investment pick up.
Last month, Prime Minister Narendra Modi had also wished for double digit GDP growth and finance minister Piyush Goyal repeating that saying this growth rate is possible is the fourth quarter of the current fiscal.
The Reserve Bank of India expects India to grow at 7.4 per cent in FY 2018-19. The Economic Survey tabled in Parliament on January 29, had estimated that India would re-establish itself as the world's fastest growing major economy with GDP expanding by 7-7.5 per cent in 2018-19.
The International Monetary Fund, too, has predicted India's economic growth at 7.4 per cent in FY 2018-19.
The World Bank has also predicted India's GDP growth at 7.3 per cent in FY2018-19. In a report released recently, it said: "Growth in India is projected to accelerate to 7.3 per cent in FY2018-19 and 7.5 per cent on an average in 2019-20."
In March, investment bank Goldman Sachs downgraded India's economic growth from 8 per cent to 7.6 per cent for financial year 2018-19. It, however, retained growth prediction for FY 2019-20 at 8.3 per cent.