India Needs 8% Growth to Be 3rd Largest Economy by 2030

Mumbai, Jun 26 (PTI) Veteran industry leader A M Naik on Wednesday said the country will have to grow at 8 per cent every year to become the third biggest economy in the world by 2030.

"If you want to be the third largest by 2030, then you need an 8 per cent growth," the L&T Chairman Emeritus told reporters here.

India is the fifth largest economy in the world with an economy size of over USD 3 trillion, and it is widely believed to overtake Japan and Germany to become the third biggest.

The country grew at 8.2 per cent in FY24, and the average yearly growth for the last three years has been over 8 per cent.

However, the GDP expansion is widely expected to slow down to about 7 per cent in FY25 and much slower ahead on a larger base.

"Our expectation is that the country should grow at 8 per cent. Broadly, if you really want to get to the third largest economy less than 8 per cent growth will find it difficult to reach there," he said.

Naik, who has been associated with the L&T Group for over six decades, declined to comment on the changes in the policy framework that would be essential to achieve the growth targets.

L&T Chairman S N Subrahmanyan said he is sanguine about the same policies will continue as the same government has come back to power, and added that it is a majority government as well.

"It is same govt releected with a different kind of a mandate," he said, when asked about the challenges that will be faced by a coalition government.

He said all the key ministries continue to be headed by the same ministers which is a comforting factor from a policy continuity perspective.

"The policies will continue, the infrastructure spending will continue and the ability to create more avenues for growth etc. will be there. It's a very good feeling to have," Subrahmanyan said.