India’s economy needs 8% annual growth for next decade, says finance ministry

Published 19/08/2025, 11:24
India’s economy needs 8% annual growth for next decade, says finance ministry

Investing.com -- India’s economy needs to grow by approximately 8% annually over the next decade amid increasing geopolitical uncertainties, according to the federal finance ministry’s statement to a parliamentary panel.

The ministry indicated that domestic demand and investments are expected to drive this growth, as outlined in a report released Tuesday.

This growth target aligns with the government’s broader objective of transforming India into a developed economy by 2047, a goal that economists have indicated would require sustained annual growth of 8%-9%.

Current government estimates project India’s growth for the financial year ending March 31 at 6.3%-6.8%, which is generally consistent with last year’s 6.5% expansion but significantly below the 9.2% growth achieved in 2023-24.

The finance ministry presented these views in its June response to a parliamentary committee, emphasizing that "Ideally, the Indian economy will need to grow by around 8% in real terms every year, at least for a decade."

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