India Aiming to Surpass Japan and Germany to Become Third-Largest Economy by 2027, Says Finance Minister Nirmala Sitharaman
Image Source: The Indian Express
Finance Minister Nirmala Sitharaman announced on Wednesday that India is poised to become the world’s third-largest economy by 2027, overtaking Japan and Germany. Speaking at the Indo-Pacific Regional Dialogue in New Delhi, Sitharaman expressed confidence in India’s economic growth, citing an estimated growth rate of just under 7 percent for the year, the highest among major economies despite global challenges.
Sitharaman highlighted the International Monetary Fund’s (IMF) conservative estimates, projecting India’s GDP to cross the $5 trillion mark, securing the third position globally by 2027. She emphasized India’s ambition to transition into a developed economy by 2047.
Addressing the significance of India’s ‘Blue Economy,’ which contributes approximately 4 percent to the GDP, Sitharaman underscored the vast opportunities presented by India’s extensive coastline, numerous ports, and navigable waterways. According to UNCTAD, India ranked as the second-largest exporter of ocean-based goods and services among developing countries in 2020.
The Finance Minister emphasized India’s commitment to the rules-based international order and its active role in the Indo-Pacific region. Sitharaman noted that while the Indo-Pacific is economically dynamic, it is also geopolitically contested, with India firmly advocating for an inclusive and rules-based system.
Sitharaman highlighted India’s comprehensive national power linked to the ocean and outlined the government’s determination to support the maritime sector through fiscal policies and financial outlays. India aims to position itself as a hub in diversified supply chains across the Indo-Pacific and the world.
Providing key statistics, Sitharaman noted India’s rising global ranking in international shipments, moving from 44th place in 2014 to the 22nd rank in 2023. She highlighted the improvement in Indian ports’ turnaround time, surpassing established maritime centers like Singapore, the UAE, Germany, the USA, Australia, Russia, and South Africa.
Sitharaman also discussed strategic initiatives, including the creation of a ‘Marine Cargo Pool’ and the establishment of an Indian-owned and India-based Protection and Indemnity (P&I) entity for shipping operations. Additionally, she emphasized India’s focus on capacity building in the maritime sector through the National Monetisation Pipeline (NMP) and highlighted the India-Middle East-Europe Connectivity Corridor (IMEC) as a promising connectivity project.
The IMEC, signed at the 18th G-20 Summit in New Delhi, aims to enhance transportation efficiency, reduce logistics costs, and promote economic integration across South Asia, West Asia, Europe, and the Middle East. Sitharaman acknowledged the geopolitical challenges associated with the project, citing the ongoing conflict in Israel and Gaza as a manifestation of these challenges.
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