India’s economic outlook shines brightly. CRISIL anticipates a robust 6.8% GDP growth for FY’25, propelling the nation toward upper-middle-income status by 2031. With this estimated GDP growth rate, it would become the world’s third-largest economy by 2031.
Latest CRISIL Ratings| Key Highlights
· India’s GDP projected to grow at 6.8% in FY’25.
· India expected to become an upper middle-income country by 2031.
·  Reports anticipate the Indian Economy to double to USD 7 trillion by 2031.
·  Manufacturing and services sectors to grow significantly.
Fiscal Growth Projection For the Indian Economy
Crisil’s India Outlook report anticipates a moderation in India’s real GDP growth. It relates to the current fiscal year’s better-than-expected 7.6% to 6.8% in fiscal year 2025.
In the subsequent fiscal years (2025-2031), it further expects the Indian economy to surpass the USD 5 trillion mark. With this, it shall approach the USD 7 trillion milestone.
This period could witness an average expansion rate of 6.7%, propelling India to become the world’s third-largest economy.
This shall elevate India’s per capita income to the upper-middle-income category by 2031.
Economic Status and Projections
Presently, India ranks as the fifth largest economy globally. It has a GDP size of USD 3.6 trillion, following the US, China, Japan, and Germany.
Crisil’s Chief Economist, Dharmakirti Joshi, highlighted abundant opportunities for both manufacturing and services. He said they could meet domestic and global demand. He projected India’s GDP growth rates of 9.1 percent for manufacturing and 6.9 percent for services between fiscal years 2025 and 2031.
Manufacturing Sector Outlook
India’s manufacturing sector is ready to grow significantly. It’s fueled by high capacity utilisation and global supply-chain diversification. In addition, India’s GDP growth rate depends upon infrastructure investments and a focus on green initiatives.
Continuous reforms and enhanced competitiveness will push its GDP share beyond 20% by fiscal year 2031.
Sectoral Growth Outlook
Key sectors like electronics, electric vehicles (EV), and energy transition-intensive industries could uplift capital expenditure in fiscal years 2023 and 2024. From fiscal years 2025 to 2031, both manufacturing and services sectors will grow steadily. However, the service sector could remain the primary driver of India’s GDP growth rate.
Challenges and Opportunities For the Indian Economy
Despite positive growth prospects, India faces challenges. This includes geopolitical tensions, a slowing global recovery, climate change, and technological disruptions. However, fiscal consolidation and greater private sector involvement should keep economic momentum going.
Conclusion
CRISIL’s optimistic projections for India’s GDP growth indicate a bright future for the economy. The forecasted 6.8% growth in FY’25, along with the path towards upper-middle-income status by 2031, highlights India’s potential for progress.
Source- moneycontrol.com
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