India will be third largest GDP by 2027, says Nirmala

New Delhi: Terming the India-Middle East-Europe Connectivity Corridor (IMEC) as one of the most promising connectivity projects, Union finance minister Nirmala Sitharaman on Wednesday said that it would be a win-win situation for all stakeholders who are involved in bringing efficiency in transportation, reducing logistic costs, increasing economic unity, generating employment, and lowering greenhouse gas emissions.

“However, it is not without its geopolitical challenges and the ongoing conflict in Israel and Gaza is a worrying manifestation of these,” she said.

She further said, the Indian economy is on the right track and is heading towards a bright future.

“India is expected to overtake Japan and Germany to emerge as the third largest economy in the world by 2027. The country’s economic growth is estimated to be just under 7 per cent during the year, the highest among major economies, despite global headwinds,” Sitharaman said, while addressing the Indo-Pacific Regional Dialogue here.

As far as the IMEC project is concerned, it was signed at the 18th G20 Summit held in New Delhi on September 9-10 this, marking the culmination of India’s G20 Presidency. “It is a multi-modal economic corridor that incorporates multiple networks of shipping, railways, and roadways and will also include electricity cables, high-speed data cables, and a hydrogen pipeline,” Sitharaman said.

On the country’s growing economy, she also said that amidst supply-chain disruptions and economic turbulence due to contemporary conflicts that impact the Indo-Pacific, irrespective of whether they are occurring in relatively distant Ukraine or in relatively-proximate Israel or Yemen, and despite the palpable tensions prevalent in the South- and East China Sea, the Indian economy stands out as a bright spot.

“Even according to the usually conservative estimates of the IMF, the Indian economy is set to emerge as the world’s third largest economy by 2027, hopping over Japan and Germany, as its GDP crosses the $5 trillion level. By 2047, India aspires to be a developed economy,” she said, adding that India's ‘blue economy’ accounts for roughly 4 percent of the GDP and represents a sea of opportunities.

The finance minister also said India has significantly improved its position as a well-governed and innovative country with a conducive environment for business as reflected in several global indices. “Noting that the country’s comprehensive national power is going to remain inextricably linked to the ocean, India is seized of the pressing need to grow the maritime sector as a whole and the government is determined to provide the requisite support by way of fiscal policy and financial outlay,” she said.

Talking about the maritime growth in the country, she said that India has 9 states and 4 Union Territories situated on the coast, 12 major and 200+ non-major ports situated along its coastline, and a vast network of navigable waterways for international and domestic trade. “Our experience of the maritime manifestations of the Covid-19 pandemic has led to shipping insurance, too, becoming a particular area of policy focus,” the finance minister added.