India expected to become $5 tn economy by FY26 or FY27: CEA

New Delhi, Feb 1 (IANS) India is expected to become a $5 trillion economy by FY26 or FY27 if the 8 per cent GDP growth rate is retained, Chief Economic Advisor, V. Anantha Nageswaran, said on Tuesday.

In the post-Budget press conference held here, Nageswaran said while replying to a question: "If we continue to retain the path of 8 per cent of real GDP growth and if we extrapolate it, we should be a $5 trillion economy in terms of nominal GDP in the Financial Year 2025-26 or 2026-27."

Before the conference, in her Budget speech in the Parliament on Tuesday, Finance Minister Nirmala Sitharaman said that overall, sharp rebound and recovery of the economy is reflective of "our country's strong resilience".

"India's economic growth in the current year is estimated to be 9.2 per cent, the highest among all large economies," she said.

On Monday, the Economic Survey 2021-22 said that India's economy is expected to grow at 8-8.5 per cent in the next fiscal.

According to the Survey, the building back of the economic momentum along with enhanced vaccination drive as well as the likely long-term benefits of supply-side reforms in the pipeline, the Indian economy is in a good position to witness GDP growth of 8.0-8.5 per cent in 2022-23.

"Growth in 2022-23 will be supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending.

"The year ahead is also well poised for a pick-up in private sector investment with the financial system in a good position to provide support to the revival of the economy," the Survey noted.

However, the Survey also pointed out that the global environment still remains uncertain.