India on track for historic growth streakas global bodies raise forecasts above 7%

NEW DELHI: Going by projections by global agencies, India is on course to surpass its 2003-2007 record of five consecutive years of 7% or higher growth, Kyunghoon Kim of Korea Institute for International Economic Policy said.Starting 2021, India has recorded a five-year average annual growth rate of 7.83%, marking the second-highest five-year average since 1960, Kim said in a social media post. Between 2003 and 2007, the economy had expanded at an average pace of 7.89%. “Sustaining such momentum over several years deserves attention,” Kim said.Following a 5.8% contraction during the pandemic, India’s economy rebounded sharply by 9.7% in 2021 and has sustained growth exceeding 7% in each subsequent year.After a 7.8% growth in the June quarter, most global outfits — from IMF and World Bank to OECD and rating agencies — have revised their projections to around 7% growth this year, making India the fastest growth major economy once again.Kim highlighted that the latest round of growth is on an expanded base as India’s GDP stood at over $1 trillion in 2007 and is now approaching $4 trillion. A 7% expansion now delivers larger absolute additions to national output. “It is projected to become the world’s third-largest economy around 2030,” he said.While structural and global headwinds remain, he noted that maintaining such sustained high-velocity growth across a population of 1.4 billion represents a milestone achievement. “I hope economists at major institutions and I will once again be adding a few decimal points to our forecasts when the next quarterly GDP figures arrive,” he said.You use AI every day. Now get your AI Quotient. Take the AIQ test.