India’s Economy Expected to Reach $5 Trillion by FY2028-29, Says IMF Projection

India's economy is projected to cross the $5 trillion milestone in fiscal year 2028-29, according to the International Monetary Fund (IMF). The projection was cited by India's Finance Minister Nirmala Sitharaman in a written reply to the Rajya Sabha.
Referring to the IMF's World Economic Outlook (April 2026), the finance minister said India's nominal Gross Domestic Product (GDP) is expected to reach approximately US$5.1 trillion by FY2028-29.

She said the government is pursuing an integrated growth strategy focused on agriculture, manufacturing, micro, small and medium enterprises (MSMEs), infrastructure, digital technology, and high-value industries to achieve this target.

Focus on Manufacturing and Industrial Growth
The government continues to promote domestic manufacturing and investment through initiatives such as the Production Linked Incentive (PLI) Scheme, Make in India, PM Gati Shakti, and the National Logistics Policy.

Support for MSMEs is being strengthened through the Emergency Credit Guarantee Scheme (ECGS), simplified Udyam Registration, and the PM Vishwakarma programme.

Digital Economy and Emerging Technologies
The government is also investing heavily in digital public infrastructure, Global Capability Centres (GCCs), artificial intelligence (AI), semiconductors, electronics, clean energy, and biopharmaceuticals.

The 2026-27 Union Budget announced the establishment of a National Hospitality Institute, regional medical hubs, and dedicated content creator labs for the Animation, Visual Effects, Gaming and Comics (AVGC) sector.

Agriculture and Trade Reforms
According to the finance minister, reforms in agriculture include expanding irrigation, promoting technology adoption, crop diversification, and improving market access for farmers.

India is also working to expand Free Trade Agreements (FTAs) while implementing GST and income tax reforms aimed at improving the ease of doing business.

Progress in Recovering Non-Performing Assets
Responding to another parliamentary question, Sitharaman said that during FY2024-25, banks filed 215,709 cases under the SARFAESI Act involving non-performing assets (NPAs) worth ₹103,180 crore.

She added that banks have successfully recovered ₹32,466 crore through these proceedings.

The Indian government believes that sustained investment in manufacturing, technology, infrastructure, and human capital will strengthen long-term economic growth and support its vision of building a "Viksit Bharat" (Developed India) by 2047.