India GDP To Cross USD 5 Trillion By FY29, Says Finance Minister Nirmala Sitharaman

India is on track to cross the USD 5 trillion economic milestone by FY29, according to Finance Minister Nirmala Sitharaman, according to a PTI report. The projection is based on estimates from the International Monetary Fund (IMF) published in its World Economic Outlook Database in April 2026.

The Finance Minister shared the details in a written reply in the Rajya Sabha on August 18, 2026. She highlighted the government's broad-based growth strategy aimed at supporting long-term economic expansion across sectors.

India GDP Forecast to Reach USD 5.1 Trillion By FY29

According to the IMF’s World Economic Outlook Database released in April 2026, India’s Gross Domestic Product (GDP) at current prices is projected to reach around USD 5.1 trillion in FY29. The estimate places India on course to achieve the USD 5 trillion economy milestone within the next few years.

The projection reflects expectations of continued economic growth supported by domestic demand, investment activity and sectoral development. The Finance Minister cited the IMF data while responding to a query in the Rajya Sabha.

Government Growth Strategy to Support Economic Expansion

The government has adopted a broad-based growth strategy to support India's economic development. According to the Finance Minister, the approach focuses on strengthening multiple sectors of the economy rather than relying on a single growth engine. The strategy includes initiatives aimed at improving productivity, expanding infrastructure and enhancing the overall business environment. These measures are intended to create a sustainable foundation for long-term economic growth.

Agricultural Productivity and Manufacturing Growth Initiatives

The government's growth framework places significant emphasis on improving agricultural productivity and promoting manufacturing activities. Increased agricultural output can support rural incomes and strengthen food security, while manufacturing expansion can contribute to employment generation and industrial growth.

The strategy also includes measures to support Micro, Small and Medium Enterprises (MSMEs), which play an important role in India's economic ecosystem. These efforts are expected to strengthen productive capacity across different segments of the economy.

Tax Reforms, Digitalisation and Infrastructure Development

The Finance Minister stated that the government is pursuing reforms to create a more efficient and streamlined tax system through changes in income tax and Goods and Services Tax (GST) frameworks.

The broader strategy also includes expanding infrastructure, improving logistics and enhancing ease of doing business. In addition, the government is focusing on innovation, digitalisation, human capital development and energy security. These areas are viewed as important drivers of productivity, competitiveness and long-term economic resilience.

Read More: India, Brazil to Boost Digital Labour Platforms, Skills and Social Security.

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Conclusion

India is projected to reach a GDP of around USD 5.1 trillion by FY29, according to the IMF's April 2026 estimates. The Finance Minister noted that the government is pursuing a broad-based growth strategy encompassing agriculture, manufacturing, MSMEs, infrastructure and tax reforms.

The policy approach also prioritises digitalisation, innovation, human capital development and energy security. Together, these initiatives are aimed at supporting sustained economic growth and helping India achieve the USD 5 trillion economy milestone.

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