Soaring High
India's economy on verge of crossing $4 tln mark in FY25, says CEA
This story was originally published at 20:18 IST on 28 February 2025
Register to read our real-time news.Informist, Friday, Feb. 28, 2025
--CEA: See significant room for pvt sector to ramp up domestic investment
--CEA: Uncertainties elsewhere not coming in way of Indian pvt sector's FDI
--CEA: Economy on verge of crossing $4 tln GDP in FY25
--CONTEXT: CEA's comments at media briefing post GDP growth data for Oct-Dec
NEW DELHI – India's GDP is on the verge of crossing the $4-trillion mark in 2024-25 (Apr-Mar), Chief Economic Adviser to the Government V. Anantha Nageswaran said on Friday. India's nominal GDP is likely to expand to $3.924 trillion by the end of FY25, considering a daily average exchange rate of INR 84.37 per dollar, he said.
Prime Minister Narendra Modi-led government, when it returned to power in 2019, had set a target of $5 trillion for the Indian economy by 2025. The government had formed a working group to develop a roadmap to achieve the target.
"The nominal GDP estimate for FY25, which happens to be around INR 331 trillion, roughly translates into, based on daily average estimate for the exchange rate of INR 84.37 that we have for FY25 up to Feb 27, $3.924 trillion, which is quite close to the $4 trillion for FY25," Nageswaran said at a media briefing after GDP data for Oct-Dec was detailed. "It is slightly short but it depends on the exchange rate as well," he said.
The statistics ministry has estimated a nominal GDP growth of 9.9% in FY25. India's nominal GDP grew 9.3% in Apr-Dec, according to the data released Friday.
Nageswaran also said that India's private sector has been making foreign direct investments, unaffected by the global uncertainties. There is significant room for the private sector to raise its domestic investment as well, especially now that there is a possibility of strong domestic demand due to the proposed cut in income tax in the FY26 Budget, the CEA added.
In the Budget for FY26, the government has proposed to fully exempt tax on income up to INR 1.2 million. While the government has been trying to induce a multiplier effect on private investment through high public capital expenditure since FY20, it has also deployed the consumer boost strategy through tax cut for next year to spur private investment. End
US$1 = INR 87.50
Reported by Krity Ambey
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
