New Delhi | Indian economy is set to cross USD 5-trillion mark in FY29 as per the International Monetary Fund (IMF) and the government has adopted a broad-based growth strategy to achieve the milestone, Finance Minister Nirmala Sitharaman said in the Rajya Sabha on Tuesday.
As per the World Economic Outlook database (April 2026) published by the IMF, India's GDP at current prices is projected to be around USD 5.1 trillion by 2028-29, she said in a written reply.
"The government has adopted a broad-based growth strategy focusing on enhancing agricultural productivity, promoting manufacturing, supporting MSMEs, expanding infrastructure, improving logistics and ease of doing business, creating an efficient and streamlined tax system through income tax and GST reforms, fostering innovation and digitalisation, strengthening human capital, and ensuring energy security," she said.
The strategy is complemented by sustained emphasis on public capital expenditure, liberalising the FDI regime, boosting exports, and strengthening macroeconomic fundamentals through prudent fiscal management and price stability.
In addition, she said, the government is strengthening trade resilience by expanding its network of Free Trade Agreements and Comprehensive Economic Partnership/Cooperation Agreements.
To develop the manufacturing sector, she said, initiatives such as Production Linked Incentives scheme, Make in India, National Logistics Policy, National Single Window System and PM GatiShakti, scheme are aimed at enhancing domestic production, attracting investment, generating employment and improving competitiveness.
These efforts are complemented by targeted measures to strengthen the MSME sector, including enhancement of guarantees and the Emergency Credit Guarantee Scheme, revision of MSME classification norms, strengthening the Trade Receivables Discounting System (TReDS) ecosystem, simplified Udyam Registration, wider access to Government e-Marketplace (GeM), and support under the PM Vishwakarma Scheme, she said.
The services sector is being strengthened through the development and deployment of Digital Public Infrastructure, promotion of Global Capability Centres (GCCs), Medical Value Travel and the Orange Economy, strengthening the artificial intelligence and digital ecosystem, and targeted initiatives for skill development and enhancing workforce employability, she said.
The Union Budget 2026-27 has announced a number of initiatives to unlock the growth potential of the services sector, including the establishment of the National Institute of Hospitality, creation of Regional Medical Hubs, expansion of Allied Health Professional institutions, development of AVGC (Animation, Visual Effects, Gaming and Comics) Content Creator Labs, and support for university townships, she said.
In agriculture, she said, the focus is on improving productivity through facilitating investments in irrigation, technology adoption, digital agriculture, crop diversification, post-harvest infrastructure and better market access.
The Union Budgets in recent years have also identified and emphasised on strategic sectors such as semiconductors, electronics, biopharmaceuticals, rare earths, chemicals, capital goods, clean energy and advanced manufacturing as important drivers for growth, she said.
These initiatives are complemented by the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme, which aims to strengthen industry-aligned skilling and create a future-ready workforce for these emerging sectors, she said.
Collectively, she said, these measures are expected to strengthen India's medium-term growth prospects and support its long-term vision of Viksit Bharat by 2047.
Replying to another question, Sitharaman said banks have registered 2,15,709 cases under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) in FY25 with an amount involved Rs 1,03,180 crore.
Of this, banks were able to recover Rs 32,466 crore, she said
