India's GDP Zooms To $3.75 Trillion In 2023 From $2 Trillion In 2014: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Monday said India is a “bright spot” in the global economy, and added that the country’s gross domestic product (GDP) has zoomed to $3.75 trillion in 2023 from $2 trillion in 2014.

Sitharaman also said the Indian economy has moved from the 10th largest to the 5th largest economy in the world. According to the IMF’s projections, India last year surpassed the UK to become the world’s fifth-largest economy. Now, only four economies are ahead of India in terms of GDP — the US, China, Japan and Germany.

“India’s GDP (at market prices) has reached $3.75 trillion in 2023, from around $2 trillion in 2014; moving from 10th largest to 5th largest economy in the world.  India is now being called a Bright Spot in the global economy. #9YearsOfEconomicReforms,” Sitharaman said in a tweet.

According to the latest National Statistics Office’s (NSO) data released recently, India’s GDP at factor cost (real GDP) grew 6.1 per cent in the fourth quarter of fiscal year 2022-23. For the entire FY23, the growth rate came in at 7.2 per cent, which was stronger than expected.

Last week, RBI Governor Shaktikanta Das said the Indian economy and the financial sector are resilient, and the Q4 GDP growth was aided by fixed investment and higher exports. He also said the real GDP growth for 2023-24 is projected at 6.5 per cent, which is the same as earlier.

On the FY2023-24 prospects, the RBI governor said domestic demand conditions remain supportive of growth on the back of improving household consumption and investment activity.

“Domestic economic activity remains resilient in Q1:2023-24 as reflected in high-frequency indicators. Purchasing managers’ indices (PMI) for manufacturing and services indicated sustained expansion, with the manufacturing PMI at a 31-month high in May and services PMI at a 13-year high in April-May. In the services sector, domestic air passenger traffic, e-way bills, toll collections and diesel consumption exhibited buoyancy in April-May, while railway freight and port traffic registered modest growth,” Das said last week while presenting the June 2023 bi-monthly monetary policy.