By 2027, India’s economy, which will benefit from its demographic advantage and the rapid growth of the financial sector, will be worth USD 5 trillion and rank third in the world by market exchange rates.
According to the IMF’s Regional Economic Outlook for Asia and the Pacific, India will account for a sixth of the increase in worldwide output in 2023 and 2024, and this country will contribute approximately two-thirds of the global growth in 2023 itself.
According to estimates, India’s GDP would be worth $5 trillion by 2027, making it the third largest in the world even at current market exchange rates. According to fertility and death statistics, the demographic dividend window opened in 2018 and is expected to extend through the 2040s, which will be a major factor in this shift.
In order to mobilize the resources needed for India’s developmental objectives in an economy with a high saving rate, like the rest of Asia, a contemporary, practical, and sound financial sector is crucial.
In India, new elements such as the digital revolution, the change in the payment and settlement environment, and advances in financial inclusion have created exciting opportunities for exploiting our growth potential.
The financial industry is being transformed by India’s rapid expansion of the use of space technology.
India’s approach to the financial sector is a reflection of a new paradigm in which macroeconomic and financial stability are seen as significantly complementing each other and laying the groundwork for chances for medium-term growth.
In a broad sense, this strategy is represented in the building up of foreign exchange reserves, which, as our experience has demonstrated, has become our country’s safety net in the absence of a truly global financial shield.
As seen by the moderate foreign debt servicing and debt-to-GDP ratios, the reserves have assisted in building bulwarks of external strength in addition to giving us the means to safeguard our financial markets and institutions from being swamped by global spillovers. As a result, we are better able to handle fresh problems like climate change and online threats while preserving public trust and meeting India’s development strategy’s financial requirements.