OmniScience Capital: India on path to $5.1tn by FY29
India's economy is on a solid path to reach $5.1 trillion by FY29, according to OmniScience Capital.
While the original goal was delayed thanks to COVID-19 and a weaker rupee, steady real GDP growth averaging 7.4% from FY22-FY26 shows how resilient India has been through tough times.
India upside to $5.9tn, FY26 $4.1tn
If things go really well, India could even hit $5.9 trillion by FY29.
Still, progress hasn't been easy. There was a dip in FY21 and slowdowns in investments due to financial stress.
By FY26, nominal GDP reached $4.1 trillion with a 5.4% annual growth rate in US dollar terms, which is less than what was needed for the original target.
Trade, inflows crucial for India $8tn
With continued strong growth (around 6.5%), moderate inflation, and an annual rupee depreciation of 2.5%, India could become an $8 trillion economy by FY35, or even $11 trillion if nominal dollar GDP growth reaches 11% thereafter!
Long-term success will depend on stronger trade and increased dollar inflows helping the rupee.