India on Track to Become World's 3rd-Largest Economy by 2027: Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman announced on Monday that India is set to maintain its growth trajectory, projecting the country to become the world's third-largest economy by 2027.

Currently ranking as the world's fifth-largest economy with a GDP of approximately $3.9 trillion, India is poised to enhance its contribution to global economic growth. Speaking at the 'Investment Opportunities in India' Roundtable at the New York Stock Exchange (NYSE), the Finance Minister highlighted the country's consistent growth and its significant potential for global economic impact.

Sitharaman emphasized that India’s current growth rate positions it to become the third-largest economy by 2027. She noted the presence of 11 Indian companies listed on the NYSE, reflecting India's expanding global economic footprint.

The roundtable was attended by representatives from pension funds, institutional investors, and fund managers across the United States, one of the largest financial systems globally by total assets under management, according to a statement by the finance ministry on X.

During the meeting, Sitharaman detailed various policy reforms and initiatives that are shaping India's economy. She stressed the government’s focus on sustainable economic growth, aimed at providing long-term investment opportunities.

Sitharaman highlighted India's rapid transformation over the past decade, marking it as one of the world's fastest-growing economies. She stressed India's commitment to not only contributing to but also shaping the global economic recovery, while redefining its role in the international economic order.

As India continues its transformation, the Finance Minister expressed confidence in the vast growth and return opportunities available for investors in the country. She reiterated the vision of Atmanirbhar Bharat (self-reliant India), aimed at revitalizing India's manufacturing sector and integrating it into global supply chains.

Sitharaman also mentioned significant infrastructure initiatives like the National Infrastructure Pipeline (NIP) and the National Monetisation Pipeline (NMP), which have laid a strong foundation for infrastructure development. She highlighted the Production Linked Incentive (PLI) schemes across various sectors, enhancing the manufacturing sector's competitiveness.

The Finance Minister pointed out the PM GatiShakti program, a comprehensive infrastructure planning initiative using technology for real-time policy impact assessment, as a standout example.

Sitharaman further elaborated on the $10 billion India Semiconductor Mission (ISM), part of the broader effort to achieve self-reliance in electronics and semiconductors. This initiative gains added significance in light of the US Department of State's recent commitment to partner with the Indian government.

She also discussed key structural reforms aimed at creating a stable regulatory environment for investors, such as the implementation of the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC), and the liberalization of Foreign Direct Investment (FDI) norms. These reforms have simplified the tax structure, streamlined distressed asset resolution, and enhanced the transparency and simplicity of the foreign investment policy framework.

These initiatives, built on a new digital economy, have spurred innovation and tech entrepreneurship, positioning India as the third-largest start-up ecosystem globally, with over 100 unicorns driving public-good innovations.

India's robust policy reforms and economic initiatives continue to foster a conducive environment for sustained growth and investment, ensuring the country remains on track to achieve its ambitious economic goals.

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