Indian economy to hit $5-tn mark in FY29 as per IMF: FM

Economic Leap | Broad-based reforms power India’s growth ambitions ahead

PTI

New Delhi

The Indian economy is set to cross the $5-trillion mark in FY29 according to the International Monetary Fund (IMF), and the government has adopted a broad-based growth strategy to achieve the milestone, Finance Minister Nirmala Sitharaman stated on Tuesday in the Rajya Sabha.  

Citing the World Economic Outlook database published in April 2026 by the IMF, Sitharaman noted that India's GDP at current prices is projected to reach approximately $5.1 trillion by 2028-29. 

The government has implemented a comprehensive growth strategy focusing on agricultural productivity, manufacturing promotion, micro, small and medium enterprises (MSMEs) support, infrastructure expansion, and logistics enhancement, she said. Additional focus areas include ease of doing business, tax system reforms through income tax and GST updates, digital innovation, human capital strengthening, and energy security. 

Complementing these steps are public capital expenditure, foreign direct investment (FDI) liberalisation, export boosts, and fiscal management. Furthermore, trade resilience is expanding via Free Trade Agreements and Comprehensive Economic Partnership or Cooperation Agreements. 

For manufacturing, initiatives like Production Linked Incentives, Make in India, the National Logistics Policy, the National Single Window System, and PM GatiShakti drive domestic output and investments. MSME growth involves the Emergency Credit Guarantee Scheme, revised classification norms, the Trade Receivables Discounting System, Udyam Registration, the Government e-Marketplace, and the PM Vishwakarma Scheme. 

The services sector benefits from Digital Public Infrastructure, Global Capability Centres, Medical Value Travel, the Orange Economy, and artificial intelligence integration. Union Budget 2026-27 announcements feature the National Institute of Hospitality, Regional Medical Hubs, Allied Health Professional institutions, Animation, Visual Effects, Gaming and Comics Content Creator Labs, and university townships. 

Agriculture strategies target irrigation investments, digital agriculture, crop diversification, and post-harvest infrastructure. Strategic sectors like semiconductors, electronics, clean energy, and advanced manufacturing are backed by the Pradhan Mantri 

Skilling and Employability Transformation through Upgraded ITIs scheme. Separately, Sitharaman reported that banks registered 2,15,709 cases under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 in FY25, involving ₹1,03,180 crore.