How India’s ongoing digital transformation will drive the rise of its economy

While presenting the Union Budget in the Parliament, the Finance Minister Nirmala Sitharaman laid out an ambitious project: turning India into a USD 5 trillion economy by 2025. The announcement has sparked discussions about the plan’s feasibility and the various conditions that the country would have to meet to achieve this target.

This brings us to a commonly asked question: is it even possible? Conservative projections say that it isn’t.The Indian economy is currently worth USD 2.8 trillion. To reach the milestone of USD 5 trillion by 2025, it will need to grow at a nominal CAGR of 12 per cent over the next five years. With government data putting the actual growth over the last quarter at lower than 6 per cent, the gap between the current market situation and the required growth rate seems too wide to bridge on the surface.