India’s economy is booming with foreign investment flooding the markets and riding the growth wave the country is offering. From defense deals to infrastructural development and a robust jobs market, India’s economy is moving in a new positive direction. India’s GDP currently stands at $3.5 trillion and estimates forecast it could beat Germany’s GDP of $4 trillion. A steady 7% growth could make India become the third biggest economy in the world and also surpass Japan’s GDP of $4.3 trillion.
In addition, India’s local currency, the Rupee is gaining strength against the US dollar and other local Asian currencies. The Indian Rupee became the top most-performing currency in January 2024 in the broader Asian markets. It beat Japan’s Yen and the Chinese Yuan taking the top spot in the Asian currency markets. Read here to know how the Indian Rupee is dominating the Forex markets this year.
Even forex investors are now betting that the Indian Rupee will outperform the US dollar this year. Read here to know why currency investors are seeing the Rupee as lucrative and not the US dollar.
India’s Economy Could Rise By 7%, Says Finance Minister
The Finance Minister of India, Nirmala Sitharaman estimated that the country’s economy could rise by 7% in the coming years. “It is eminently possible for the Indian economy to grow in the coming years at a rate above 7% on the strength of the financial sector and other recent and future structural reforms,” she said on Monday.
However, she cautioned that not everything is a bed of roses as many geopolitical issues could impact India’s economy. “Only the elevated risk of geopolitical conflicts is an area of concern,” she added. The risk includes border disputes with neighboring China, terror-related issues with Pakistan, and conflict in the Red Sea, among others.
Sitharaman estimated that India’s economy has a chance of reaching $7 trillion by the end of the decade in 2030. While the estimate is ambitious, the Ministry is working towards making the forecast a reality.