India’s economy is projected to cross the $5 billion mark in FY2028-29, Finance Minister Nirmala Sitharaman told the Rajya Sabha on Tuesday, citing the International Monetary Fund (IMF) projections. The minister added that the government has adopted a broad-based growth strategy to achieve the milestone.

As per the World Economic Outlook database (April 2026) published by the IMF, India’s GDP at current prices is projected to be around $5.1 trillion by 2028-29, she said in a written reply.

“The government has adopted a broad-based growth strategy focusing on enhancing agricultural productivity, promoting manufacturing, supporting MSMEs, expanding infrastructure, improving logistics and ease of doing business, creating an efficient and streamlined tax system through income tax and GST reforms, fostering innovation and digitalisation, strengthening human capital, and ensuring energy security,” she said, according to PTI.

India’s nominal GDP could surpass $5 trillion in FY29

GDP measures the total value of goods and services produced in an economy. “At current prices” means the calculations uses prices prevailing during the period rather than adjusting them for inflation.

The $5.1 trillion is a projection, meaning the eventual size of the economy could vary depending on factors including economic growth, the rupee-dollar exchange rate and inflation.

Government’s take on growth strategy

According to Sitharaman, the government is following a broad-based approach covering several parts of the economy.

“The government has adopted a broad-based growth strategy focusing on enhancing agricultural productivity, supporting MSMEs, promoting manufacturing, enhancing logistics and ease of business,” she stated, as per PTI.

The strategy also comprises tax reforms, human capital, digitalisation, innovation and energy security, she added.

Public capital expenditure, exports, foreign direct investment (FDI) and prudent fiscal management are also part of the approach. Additionally, the government is expanding India’s network of Free Trade Agreements and economic ties to boost trade stability.

Manufacturing and MSMEs key to growth

The government is banking on initiatives like the Production Linked Incentive (PLI) scheme, National Logistics Policy, National Single Window System, Make in India and PM GatiShakti to boost domestic manufacturing.

As per Sitharaman, these initiatives are aimed at “enhancing domestic production, generating employment, improving competitiveness and attracting investment.

For MSMEs, measures include enhanced guarantees, simplified Udyam Registration, revised classification norms and strengthening the Trade Receivables Discounting System (TReDS). Wider access to Government e-Marketplace and support under PM Vishwakarma are also part of the plan.

Which sectors could drive future growth?

The government is also focusing on services and emerging industries. Digital Public Infrastructure, Medical Value Travel, Global Capability Centres (GCCs), artificial intelligence and the digital ecosystem have been identified as areas of expansion.

Sitharaman also added that recent Union Budgets have also emphasised on strategic sectors like semiconductors, rare earths, electronics, capital goods, biopharmaceuticals, clean energy and advanced manufacturing.

In agriculture, the focus is on irrigation, digital agriculture, post-harvest infrastructure, technology and better market access.

These measures, Sitharaman stated, are likely to “strengthen India’s medium-term growth prospects” and support the country’s Viksit Bharat by 2047 vision.