Indian economy to hit $5-trillion mark in FY29 as per IMF: Finance Minister Nirmala Sitharaman
Indian economy is set to cross $5-trillion mark in FY29 as per the International Monetary Fund (IMF) and the government has adopted a broad-based growth
Indian economy is set to cross $5-trillion mark in FY29 as per the International Monetary Fund (IMF) and the government has adopted a broad-based growth strategy to achieve the milestone, Finance Minister Nirmala Sitharaman said in the Rajya Sabha on Tuesday (August 4, 2026). As per the World Economic Outlook database (April 2026) published by the IMF, India's GDP at current prices is projected to be around $5.1 trillion by 2028-29, she said in a written reply. Parliament Monsoon Session: Follow LIVE updates on August 4, 2026 "The government has adopted a broad-based growth strategy focusing on enhancing agricultural productivity, promoting manufacturing, supporting MSMEs, expanding infrastructure, improving logistics and ease of doing business, creating an efficient and streamlined tax system through income tax and GST reforms, fostering innovation and digitalisation, strengthening human capital, and ensuring energy security," she said. The strategy is complemented by sustained emphasis on public capital expenditure, liberalising the FDI regime, boosting exports, and strengthening macroeconomic fundamentals through prudent fiscal management and price stability.
In addition, she said, the government is strengthening trade resilience by expanding its network of Free Trade Agreements and Comprehensive Economic Partnership/Cooperation Agreements. To develop the manufacturing sector, she said, initiatives such as Production Linked Incentives scheme, Make in India, Logistics Policy, Single Window System and PM GatiShakti, scheme are aimed at enhancing domestic production, attracting investment, generating employment and improving competitiveness. Also Read | Registration of Births and Deaths Bill passed by Rajya Sabha amid Opposition protests These efforts are complemented by targeted measures to strengthen the MSME sector, including enhancement of guarantees and the Emergency Credit Guarantee Scheme, revision of MSME classification norms, strengthening the Trade Receivables Discounting System (TReDS) ecosystem, simplified Udyam Registration, wider access to Government e-Marketplace (GeM), and support under the PM Vishwakarma Scheme, she said. The services sector is being strengthened through the development and deployment of Digital Public Infrastructure, promotion of Global Capability Centres (GCCs), Medical Value Travel and the Orange Economy, strengthening the artificial intelligence and digital ecosystem, and targeted initiatives for skill development and enhancing workforce employability, she said.
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