• UGI USER
  • Jan 11, 2024
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INDIA TO BE A $5 TN ECONOMY BY FY28; PUSHING FOR SUNRISE SECTORS’

Why in the news?

  • Finance Minister Nirmala Sitharaman expressed confidence in India becoming the world’s third-largest economy, surpassing $5 trillion by 2027-28.
  • She envisions India reaching developed nation status by 2047, accompanied by a GDP of $30 trillion. Currently, India is the fifth-largest economy globally at $3.4 trillion.
  • Sitharaman made these remarks during a seminar at the Vibrant Gujarat Global Summit 2024.

How is India performing now?

  • Gujarat, with 5% of India’s population, contributes 8.5% to the national GDP.
  • The state exhibits significant progress with a 12% Compound Annual Growth Rate (CAGR) from 2011 to 2021, surpassing the national average of 10.4%.
  • From April 2000 to March 2023, spanning 23 years, India drew in $919 billion in Foreign Direct Investment (FDI).
  • Notably, 65% of this total, equivalent to $595 billion, was attracted in the more recent 8-9 years, as highlighted by Finance Minister Sitharaman.

Which sector will give the results?

  • Minister Sitharaman emphasised that sunrise industries will be a focal point for government attention during the Amrit Kaal, spanning India’s 75th to 100th independence anniversary.
  • She expressed confidence in the robust post-pandemic recovery of the country.

What constitute Sunrise sector?

  • Renewable energy: This sector includes solar, wind, geothermal, and other sources of clean energy that are rapidly growing as concerns about climate change and energy security increase.
  • Artificial intelligence (AI): AI is having a transformative impact on a wide range of industries, from healthcare and finance to manufacturing and transportation. As AI technology continues to develop, new companies and applications are emerging all the time.
  • Biotechnology: This sector includes the development of new drugs, medical devices, and agricultural products based on living organisms. The aging population and the increasing demand for personalized medicine are driving growth in this sector.
  • Cloud computing: Cloud computing allows businesses to access computing resources, such as storage and processing power, over the internet. This sector is growing rapidly as businesses increasingly move their operations to the cloud.
  • Electric Vehicles (EVs): This sector focuses on the development and manufacturing of electric vehicles, charging infrastructure, and related technologies.
  • Healthcare: This sector encompasses hospitals, clinics, pharmaceutical companies, medical equipment manufacturers, and healthcare IT providers.
  • Education: This sector includes educational institutions, online learning platforms, skill development centers, and education technology companies.