Indian Economy to Reach $5 Trillion in FY29, Says FM Citing IMF

India's economy is projected to reach around $5.1 trillion in FY29, according to the International Monetary Fund (IMF), as per The Economic Times news report.  

Finance Minister Nirmala Sitharaman shared the estimate in a written reply in the Rajya Sabha, citing the IMF's World Economic Outlook database released in April 2026. Based on these projections, India's GDP at current prices is expected to cross the $5 trillion mark during 2028-29. 

Growth Strategy Covers Several Sectors 

The government said its economic approach is spread across agriculture, manufacturing, services and infrastructure. It includes higher public investment, improvements in logistics, measures to simplify business procedures, and reforms in the tax system through changes in income tax and GST.  

The strategy also covers digitalisation, innovation, energy security, and plans to maintain fiscal stability and price discipline. 

Manufacturing, MSMEs and Trade Measures 

Manufacturing remains one of the focus areas through programmes such as the Production Linked Incentive (PLI) scheme, Make in India, PM GatiShakti, the National Logistics Policy and the National Single Window System.  

The government also listed measures for micro, small and medium enterprises, including revised MSME classification norms, higher credit guarantees, simplified Udyam Registration, expansion of the Trade Receivables Discounting System (TReDS), access to the Government e-Marketplace (GeM) and support under the PM Vishwakarma Scheme.  

It added that efforts are also being made to expand Free Trade Agreements and Comprehensive Economic Partnership and Cooperation Agreements. 

Services, Agriculture and Emerging Industries 

According to the Finance Minister, the services sector is being supported through Digital Public Infrastructure, Global Capability Centres, medical value travel and skill development initiatives.  

The Union Budget 2026-27 announced proposals for Regional Medical Hubs, the National Institute of Hospitality, Allied Health Professional institutions, AVGC Content Creator Labs, and university townships.  

The government also identified semiconductors, electronics, biopharmaceuticals, rare earths, chemicals, clean energy and advanced manufacturing as sectors expected to support future growth. 

Bank Recovery Figures 

In another reply, Sitharaman said banks registered 2,15,709 cases under the SARFAESI Act in FY25 involving ₹1,03,180 crore. Recoveries during the year stood at ₹32,466 crore. 

Read More: Why Is the RBI Concerned About El Nino? Know Its Impact on Inflation and Economic Growth! 

Conclusion 

According to the IMF's latest projections, India's GDP is expected to reach around $5.1 trillion in FY29. The government noted that ongoing policy measures are aimed at supporting growth across key sectors. 

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