India To Become World’s Third-Largest Economy By 2027: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman recently addressed the Indo-Pacific Regional Dialogue, highlighting India’s remarkable economic trajectory amidst global challenges. She predicted that by 2027, India would surpass Japan and Germany to become the world’s third-largest economy, underlining the resilience of the Indian economy amid global uncertainties.

India’s Economic Growth and Global Standing

Despite global headwinds, Sitharaman emphasized that India’s economic growth is estimated to be just under 7%, the highest among major economies.
She pointed out that even conservative estimates from the IMF indicate India’s ascendancy to the position of the world’s third-largest economy by 2027, with a GDP crossing the USD 5 trillion mark.

The Indo-Pacific: Economic Dynamism Amidst Geopolitical Challenges

Sitharaman acknowledged the Indo-Pacific as the world’s most economically dynamic region, constituting 60% of global GDP and almost 50% of global merchandise trade.
However, she also highlighted the geopolitical challenges in the region due to great power competition.

India’s ‘Blue Economy’: A Sea of Opportunities

Discussing India’s ‘Blue Economy,’ Sitharaman noted that it contributes approximately 4% to the GDP, representing a sea of opportunities.
With nine states and four Union Territories along the coast, 12 major and over 200 non-major ports, and an extensive network of navigable waterways, India stands as a key player in ocean-based trade.

Maritime Sector Advancements

Sitharaman underlined India’s enhanced global shipping ranking, rising from 44th place in 2014 to 22nd in 2023.
The World Bank’s Logistics Performance Index report highlighted the turnaround time of Indian ports at just 0.9 days, surpassing established maritime centers like Singapore, the UAE, and the USA.
She emphasized the government’s commitment to supporting the maritime sector through fiscal policies and financial outlays.

Strategic Initiatives: Indian-Owned P&I Entity and National Monetisation Pipeline

To boost strategic flexibility in shipping operations, Sitharaman announced the establishment of an Indian-owned and India-based Protection and Indemnity (P&I) entity.
Additionally, 31 projects in nine major ports have been identified for monetization under the National Monetisation Pipeline (NMP) to foster capacity building.

India-Middle East-Europe Connectivity Corridor (IMEC)

Sitharaman termed the India-Middle East-Europe Connectivity Corridor (IMEC) as one of the most promising connectivity projects.
Signed at the 18th G-20 Summit in New Delhi, IMEC is a multimodal economic corridor encompassing shipping, railways, roadways, electricity cables, high-speed data cables, and a hydrogen pipeline.
The corridor aims to enhance transportation efficiency, reduce logistic costs, promote economic unity, generate employment, and contribute to a cleaner, safer world by lowering Greenhouse Gas emissions.

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