Indian Economy to Hit USD 5-Trillion Mark in FY29 as per IMF: FM

Finance Minister Nirmala Sitharaman informed the Rajya Sabha that the Indian economy is projected to cross the $5.1 trillion (approximately ₹425 lakh crore) milestone by the end of the 2028-29 financial year, citing a report by the International Monetary Fund (IMF). To achieve this ambitious economic target, the Central Government is actively implementing comprehensive growth strategies aimed at strengthening the agriculture, manufacturing, and services sectors.

To boost the manufacturing landscape, the government is expanding the scope of Production Linked Incentive (PLI) schemes, PM Gati Shakti, and the National Logistics Policy. Simultaneously, the Micro, Small and Medium Enterprises (MSME) sector is being robustly supported through emergency credit guarantee schemes, the Trade Receivables Discounting System (TReDS) platform, and the PM Vishwakarma initiative. To further elevate the services sector, the government has accelerated the establishment of Global Capability Centres (GCCs), the integration of new technologies, and specialized skill development programs like ‘PM-SETU’.

The Finance Minister explained that by attracting strategic investments in critical future-ready sectors such as semiconductors, clean energy, and electronics, along with implementing simplified tax policies and pursuing Free Trade Agreements (FTAs), the government is laying a strong foundation to realize the vision of a ‘Viksit Bharat’ (Developed India) by 2047.

Highlighting a positive development for the country’s banking sector, Sitharaman also noted a significant improvement in bad loan recoveries. She stated that banks have successfully recovered ₹32,466 crore out of the ₹1,03,180 crore worth of cases filed under the SARFAESI Act during the 2025 financial year, bringing substantial relief to financial institutions.