Dr. Gita Gopinath, Deputy Managing Director of the International Monetary Fund (IMF), has stated that the country is likely to achieve this feat by 2027, following Prime Minister Narendra Modi’s declaration during his Independence Day address to the nation that the country is on its way to becoming the third-largest economy with significant reforms across sectors.
The nation’s economy has grown to be the fifth largest in the world, and it will soon rank among the top three worldwide economic powers.
Gopinath claims that during the most recent fiscal year (FY24), India’s growth performed far better than anticipated due to a recovery in private consumption growth across all sectors, particularly in the rural economy.
Sales of fast-moving consumer goods (FMCGs) and two-wheelers are driving up overall consumption. She was cited in media sources as saying, “Better harvests and higher agricultural incomes come with better monsoons.”
The Society of Indian Automobile Manufacturers (SIAM) has released its most recent data, which shows that 24,37,138 passenger cars, three-wheelers, two-wheelers, and quadricycles were produced overall in July. In July, the two-wheeler segment saw a respectable 12.5% gain over the same month the previous year.
However, despite difficulties, the FMCG market in India continues to thrive. Marketing research firm Kantar Worldpanel projects that the FMCG industry will increase by 6.1% annually in FY 2024–2025 in the rural market, up from 4.4% in the previous year.
The analysis states that the current higher volumes in the urban sector could eventually match those in the rural market. The rural FMCG market is producing over half of the sector’s volume and value, making it more valuable to the industry than it was previously.
Gopinath added that in the ensuing five to six years, the nation must generate millions of new jobs.
The nation’s economic growth for FY25 is expected to increase by 7%, according to the IMF, from 6.8% in April. RBI Governor Shaktikanta Das states that the average growth rate for India over the last three years is 8.3 percent. They have provided a growth estimate of 7.2% for the current year.
