When will India's economy reach $5 trillion according to the IMF?

The IMF now projects India's economy to reach $5 trillion around 2028-29, a delay from earlier mid-decade targets.

Why is India's $5 trillion economy goal being delayed?

The delay is primarily due to the depreciation of the Indian rupee against the US dollar, affecting the dollar valuation of India's GDP.

Will the delayed $5 trillion economy target affect Indian salaries?

While the delay doesn't automatically mean fewer jobs or pay cuts, it implies a slower rise in per-capita incomes over time.

Home / Business and Economy / India's $5 Trillion Economy: Goal Delayed by 4 Years

India's $5 Trillion Economy: Goal Delayed by 4 Years

19 Dec

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Summary

India's $5 trillion economy goal is now projected for 2028-29, not mid-decade.
A weaker rupee is significantly impacting the dollar valuation of India's GDP.
Despite delays, India remains the world's fastest-growing major economy.

India's $5 Trillion Economy: Goal Delayed by 4 Years

India's target of achieving a $5 trillion economy by 2024-25 has been revised, with the IMF now projecting this milestone to be reached around 2028-29. Senior ministers had previously championed the earlier date as a near-term goal that would significantly improve citizens' lives through job growth and increased income.

The shift in the timeline is largely attributed to the rupee's recent slide to record lows against the dollar, which reduces the dollar equivalent of India's nominal GDP. Despite this currency-driven adjustment, the underlying economic growth is still robust, with the IMF and RBI forecasting strong real GDP growth for the coming years. India is expected to maintain its position as the world's fastest-growing major economy.