Nirmala Sitharaman Says India To Become $5 Trillion Economy By FY29, Cites IMF

Finance Minister Nirmala Sitharaman on Tuesday said India is expected to achieve the milestone of becoming a USD 5-trillion economy in the financial year 2028-29, based on projections by the International Monetary Fund (IMF). Responding in the Rajya Sabha, Sitharaman said the IMF’s World Economic Outlook database released in April 2026 estimates India’s GDP at current prices to reach around USD 5.1 trillion by 2028-29.

The Finance Minister said the government has adopted a broad-based economic growth strategy focused on improving productivity, strengthening infrastructure and creating a favourable environment for investment. The approach includes boosting agriculture, expanding manufacturing, supporting micro, small and medium enterprises (MSMEs), improving logistics, simplifying taxation through income tax and GST reforms, promoting digitalisation and ensuring energy security.

Sitharaman highlighted that sustained public capital expenditure, reforms in foreign direct investment policies, export promotion and prudent fiscal management are key pillars of the government’s medium-term economic strategy. She also said India is working to strengthen trade resilience by expanding its network of Free Trade Agreements and Comprehensive Economic Partnership and Cooperation Agreements with global partners.

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To accelerate manufacturing growth, the government has focused on initiatives such as the Production Linked Incentive (PLI) scheme, Make in India, National Logistics Policy, National Single Window System and PM GatiShakti. Sitharaman said these measures aim to increase domestic production, attract investment, create employment opportunities and improve India's competitiveness in global markets. She added that support for MSMEs has been strengthened through improved credit guarantees, revised classification norms, simplified registrations and platforms such as the Government e-Marketplace.

The Finance Minister said the services sector is also being expanded through digital public infrastructure, growth of Global Capability Centres, medical value travel, artificial intelligence initiatives and skill development programmes. She pointed to measures announced in the Union Budget 2026-27, including the proposed National Institute of Hospitality, regional medical hubs, allied health institutions and AVGC content creator labs, as steps aimed at unlocking future growth opportunities.

Sitharaman further said agriculture reforms are focused on improving productivity through better irrigation, technology adoption, digital agriculture, crop diversification and stronger market access. She added that sectors such as semiconductors, electronics, biopharmaceuticals, rare earths, clean energy and advanced manufacturing have been identified as strategic growth areas. Separately, she informed Parliament that banks registered 2,15,709 cases under the SARFAESI Act in FY25 involving Rs 1,03,180 crore, of which Rs 32,466 crore was recovered.

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