India is set to cross the USD 5-trillion mark in FY29 as per the International Monetary Fund (IMF) projections. According to Finance Minister Nirmala Sitharaman's statement in the Rajya Sabha, the IMF's World Economic Outlook (April 2026) forecasts India's GDP at current prices to be around USD 5.1 trillion by 2028-29. This milestone represents a significant achievement in India's economic trajectory and reinforces the country's position as a major global economic power.
The government has adopted a broad-based growth strategy focusing on enhancing agricultural productivity, promoting manufacturing, supporting MSMEs, expanding infrastructure, improving logistics and ease of doing business, creating an efficient and streamlined tax system through income tax and GST reforms, fostering innovation and digitalisation, strengthening human capital, and ensuring energy security. As reported by Sitharaman, this strategy is complemented by sustained emphasis on public capital expenditure, liberalising the FDI regime, boosting exports, strengthening trade resilience by expanding Free Trade Agreements and Comprehensive Economic Partnership/Cooperation Agreements, and strengthening macroeconomic fundamentals through prudent fiscal management and price stability.
To develop the manufacturing sector, the government has implemented initiatives such as Production Linked Incentives scheme, Make in India, National Logistics Policy, National Single Window System and PM GatiShakti scheme aimed at enhancing domestic production, attracting investment, generating employment and improving competitiveness. According to Sitharaman's statement, the government is strengthening the MSME sector through enhancement of guarantees and the Emergency Credit Guarantee Scheme, revision of MSME classification norms, strengthening the Trade Receivables Discounting System (TReDS) ecosystem, simplified Udyam Registration, wider access to Government e-Marketplace (GeM), and support under the PM Vishwakarma Scheme. The government has also registered 2,15,709 cases under SARFAESI Act in FY25 with an amount involved ₹1,03,180 crore, recovering ₹32,466 crore.
The services sector is being strengthened through the development and deployment of Digital Public Infrastructure, promotion of Global Capability Centres (GCCs), Medical Value Travel and the Orange Economy, strengthening the artificial intelligence and digital ecosystem, and targeted initiatives for skill development and enhancing workforce employability. As reported by Sitharaman, the Union Budget 2026-27 has announced initiatives including the establishment of the National Institute of Hospitality, creation of Regional Medical Hubs, expansion of Allied Health Professional institutions, development of AVGC Content Creator Labs, and support for university townships. In agriculture, the focus is on improving productivity through facilitating investments in irrigation, technology adoption, digital agriculture, crop diversification, post-harvest infrastructure and better market access.
The government has identified and emphasised on strategic sectors such as semiconductors, electronics, biopharmaceuticals, rare earths, chemicals, capital goods, clean energy and advanced manufacturing as important drivers for growth. These initiatives are complemented by the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme, which aims to strengthen industry-aligned skilling and create a future-ready workforce for these emerging sectors. According to Sitharaman, these measures are expected to strengthen India's medium-term growth prospects and support its long-term vision of Viksit Bharat by 2047.
