Aiming beyond 7% growth

India is not the world's fastest-growing economy yet, but a revival of the animal spirits could propel it into that position

India’s gross domestic product (GDP) growth is now projected to be around 6.5 per cent for the financial year 2023-24, after recording 7 per cent in 2022. This is commendable, given global headwinds. The economy recovered sharply in 2021, growing by 9.1 per cent after a huge drop of (-) 5.8 per cent in 2020.

Where will it go over the medium-term? If India’s GDP continues to grow at 6.5 per cent on a sustained basis, it will become the third-largest economy soon. However, it is noteworthy that, on a per capita basis, it will remain a lower-middle income country well