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- India can achieve this target of 5 trillion dollars by 2028-29.
India 5 Trillion Dollar GDP Target: The Indian government had set an ambitious target of becoming a 5 trillion dollar (5 trillion dollar) economy by the financial year 2024-25, which has not been achieved.
According to the current data of the year 2026, India’s economy is currently at the level of about 4.15 trillion dollars. That means India is about $850 billion behind its set target. The surprising thing is that India’s GDP in the year 2025-26 is almost double to Rs 346 lakh crore from Rs 189 lakh crore in 2018-19. Still, where are the difficulties in achieving the targets set in the BJP’s manifesto in 2019? Let us know.
Why are dreams breaking?
The GDP target is measured in US dollars. In 2019, when the target was set to increase GDP to 5 trillion dollars by 2024-25, the rupee was around 70 against the dollar. That means one American dollar was equal to 70 rupees. Now this rupee has fallen to a historic low of 95.63 against the dollar.
Despite the strong economy at the domestic level, the size of India’s GDP in dollar terms becomes small. In the year 2020, during the Corona epidemic, India’s GDP growth rate dropped to -5.8%. Due to the global pandemic, the economy suffered so much damage in the two years 2020 and 2021 that it took a long time to recover from it.
Skyrocketing prices of crude oil
Due to the war between Iran and America, tension in West Asia and the resulting stoppage of energy supply through the Strait of Hormuz, the price of Brent crude oil has crossed the range of $ 100 per barrel. Since India imports more than 80% of its oil requirement from other countries. In such a situation, due to the cost of crude oil, expenditure on imports increases compared to before, foreign exchange reserves decrease rapidly, due to which the current account deficit increases. Overall, the pressure on the rupee increases and its value against the dollar decreases.
slow pace of export
Due to the war between Russia and Ukraine and tension in the Middle East, the economy of the whole world is slowing down. Due to decreased global demand, India’s merchandise exports did not grow as expected, due to which the manufacturing sector is also facing difficulties in achieving growth.
When will India’s economy cross 5 trillion dollars?
It depends on both growth and exchange. At present, India remains one of the fastest growing major economies in the world with an annual growth rate of 6.5%-6.6%. According to the estimates made by SBI Research and the Chief Economic Advisor, if the rupee remains stable at the level of 95 dollars, then India can easily achieve this milestone of 5 trillion dollars by the financial year 2028-29 or 2029-30.
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