Indian Economy: In a special weekly function organized by the Finance Ministry under the 'Azadi Ka Amrit Mahotsav', Chief Economic Adviser (CEA) Anantha Nageswaran said that if the country's GDP doubles every seven years, then India will become a $20 trillion economy by 2040 with a per capita income of $15,000.
In the medium term, the fundamentals of the economy are strong, he said. India is in a better position than other countries to deal with economic challenges.
The International Monetary Fund (IMF) has projected that India's economy can cross the $5 trillion mark by 2026-27.
Further, the Chief Economic Advisor said that this year India will face challenges of sustained high growth, bringing down inflation and keeping the fiscal deficit in balance. In addition to all this, it will need to be ensured that the external value of the Indian Rupee is maintained.
He said that there may not be a pre-determined framework or many options to meet these challenges.
The Finance Ministry is fully prepared to deal with such a situation. Nageswaran said that look at the current concern of inflation.
India has come out of its financial system in the last 10 years. Not only has the books of banks and the finance sector improved, but the position of the corporate sector has also improved.
The impact of some structural reforms like the Goods and Services Tax (GST) and IBC of the government is temporarily not visible due to developments like pandemics and geopolitical tensions, the CEA said.
But after these clouds are cleared, these structural reforms will play an important role in boosting India's growth rate.