India needs to grow 8% annually amid geopolitical uncertainties to reach target, says the Ministry of Finance

The government set a target to make India a developed economy by 2047, under the ‘Viksit Bharat’ banner, to achieve this goal, the finance ministry said the country would have to grow by 8 percent over the next ten years, Reuters reports. The ministry told lawmakers that India’s economy should expand about 8 percent annually in the next decade amid rising geopolitical uncertainties. It expects this growth to come from domestic demand and investments, the report added. “The ideal would be that the Indian economy should grow by about 8 percent in real terms each year, at least for a decade,” the finance ministry said in its reply to a parliamentary committee in June, according to a report released on August 19. India’s growth estimates that the government’s growth of India at 6.3-6.8 percent in this financial year to 31 March (FY 2024-25), but in line, was in line with the 6.5 per cent-growing year, but the previous year, but the previous year, but the previous year. Much lower than the 9.2 percent recorded in FY23-24. Furthermore, the ministry added that India would also have a developed economy on the targeted date, India would also pump its investment rate to about 35 percent of GDP from the near 31 percent at the moment. Global geopolitical uncertainties are abundant amid an uncertainty background, including total rates of 50 percent of the United States on Indian goods, New -Delhi is trying to encourage domestic demand by planned consumer tax cuts, for personal tax cuts in February, while the central bank has reduced by 100 basis points this year. The 50 percent rate can grow by up to 40 basis points in 2025-26, the report says. The estimates of the ministry were made in June before the US imposed additional rates of 25 percent (total to 50 percent) on India, which, according to US President Donald Trump, was ‘punishment’ for buying oil from Russia. Earlier this month, India-American trade conversations suffered a setback because New Delhi did not agree to give Washington access to its large agricultural and dairy markets. India prioritize improved opportunities for its labor -intensive exports, including textiles, clothing and leather goods, the finance ministry said. (With input of Reuters)