New Delhi: India is firmly on course to achieving over 8% growth and becoming the world’s 5th largest economy, Finance Minister Arun Jaitley said today.
It has achieved an average growth of 7.5% in the first three years of the Modi government, he said.
The GDP (Gross Domestic Product) growth of 6.3% in the July-September quarter of the current fiscal signalled turnaround of the economy, Jaitley said while presenting the Union Budget 2018-19 in the Lok Sabha.
The country is expected to grow at 7.2 to 7.5% in the second half of the current fiscal, ending 31 March.
The manufacturing sector, he said, is back on a good growth path and the services, the mainstay of India’s growth, have also resumed their high growth rates of 8% plus. Also, exports are expected to grow at 15% in 2017-18.
“We are now firmly on course to achieve high growth of 8% plus,” Jaitley said in his one-hour 50-minute speech.
He stressed that the Indian economy has performed very well since the NDA government took over in May 2014.
“Indian economy is now $2.5 trillion economy seventh largest in the world, he said.
“India is expected to become the fifth largest economy very soon,” he added.
On Purchasing Power Parity (PPP) basis, India is already the third largest economy.
As per the estimates of Central Statistics Office (CSO), Indian economy is expected to grow at 6.5% in the current fiscal.
For 2018-19, the economy is likely to grow at 7-7.5% as per the Economic Survey tabled in Parliament earlier this week.
GDP growth in first quarter of 2017-18 had moderated to 5.7%, the lowest in the three years, before recovering to 6.3% in the following three months.