India poised to emerge as third largest global economy by 2027:FM

Finance Minister, Nirmala Sitharaman on Wednesday said India is expected to overtake Japan and Germany to emerge as the third largest economy in the world by 2027. Addressing the Indo-Pacific Regional Dialogue in New Delhi, Sitharaman said India’s economic growth is estimated to be just under 7 per cent during the year, the highest among major economies, despite global headwinds.Observing that Indo-Pacific is undoubtedly the world’s most economically dynamic region, Sitharaman said it encompasses 60 per cent of global GDP, and almost 50 per cent of global merchandise trade.The Indian economy is therefore on the right track and is heading towards a bright future, she said.
Amidst supply-chain disruptions and economic turbulence due to contemporary conflicts that impact the Indo-Pacific, irrespective of whether they are occurring in relatively distant Ukraine or in relatively- proximate Israel or Yemen, and despite the palpable tensions prevalent in the South-and East China Sea, the Indian economy stands out as a bright spot, she said.“Even according to the usually conservative estimates of the IMF, the Indian economy is set to emerge as the world’s third largest economy by 2027, hopping over Japan and Germany, as its GDP crosses the USD 5 trillion level. By 2047, India aspires to be a developed economy,” she said.Talking about India’s ‘Blue economy’, she said, it accounts for roughly 4 per cent of the GDP and represents a sea of opportunities.According to the UNCTAD (United Nations Conference on Trade and Development),India was the second largest exporter of ocean- based goods and services among developing countries in 2020.

We are determined to adhere to our principle of ‘leaving no one behind’, whether at a national level or a regional one. This is why India’s maritime policy is perfectly encapsulated in the acronym ‘SAGAR’, which expands to Security and Growth for All in the Region.

We truly… pic.twitter.com/xQZR7q9Hfw

— Nirmala Sitharaman Office (@nsitharamanoffc) November 15, 2023

As India accelerates its economic growth and uplifts its teeming masses, moving them from poverty to prosperity, she said it is registering impressive gains in its comprehensive national power as well as in terms of its international stature.
International economic experts have cautiously welcomed India's ambitious projection, acknowledging the country's economic potential but also emphasizing the need for continued reforms, infrastructure development, and effective policy implementation to sustain and accelerate growth.As India inches closer to claiming the third-largest global economy title, attention is now turning to the potential impact this development could have on regional and global economic dynamics. The rise of India as a major economic player is expected to reshape international trade patterns and foster new opportunities for collaboration and investment.While challenges undoubtedly lie ahead, Finance Minister Nirmala Sitharaman's optimistic outlook reflects a confidence in India's economic resilience and its ability to overcome obstacles on the path to becoming a key player in the global economic arena. The world will be closely watching as India charts its course towards this ambitious economic milestone.

(Ira Singh, Asstt Editor)