India is expected to cross the USD 5 trillion economic milestone in FY29, according to the latest projections by the International Monetary Fund (IMF). Responding to a written question in the Rajya Sabha, Finance Minister Nirmala Sitharaman said the IMF's World Economic Outlook database released earlier this year estimates India's gross domestic product (GDP) at current prices to reach around USD 5.1 trillion during FY29. 
The Finance Minister said the government has adopted a broad-based growth strategy aimed at supporting long-term economic expansion. The approach focuses on improving agricultural productivity, strengthening manufacturing, supporting micro, small and medium enterprises (MSMEs), expanding infrastructure, improving logistics and enhancing the ease of doing business. 
She added that the strategy also includes creating a more efficient tax system through income tax and Goods and Services Tax (GST) reforms, promoting innovation and digitalisation, strengthening human capital and ensuring energy security. 
According to the minister, these efforts are supported by sustained public capital expenditure, continued liberalisation of the foreign direct investment (FDI) regime, export promotion and prudent fiscal management to maintain macroeconomic stability and price control. 
She further informed the House that the government is expanding India's network of Free Trade Agreements (FTAs) and Comprehensive Economic Partnership and Cooperation Agreements to improve trade resilience and strengthen global economic ties. 
To increase manufacturing capacity, the government continues to implement initiatives such as the Production Linked Incentive (PLI) Scheme, Make in India, the National Logistics Policy, the National Single Window System and PM GatiShakti. These programmes are intended to increase domestic production, attract investments, create employment opportunities and improve India's global competitiveness. 
Sitharaman also highlighted measures aimed at strengthening the MSME sector. These include enhanced credit guarantee support, the Emergency Credit Guarantee Scheme, revised MSME classification norms, strengthening the Trade Receivables Discounting System (TReDS), simplified Udyam Registration, wider access to the Government e-Marketplace (GeM) and continued support through the PM Vishwakarma Scheme. 
The services sector is also receiving policy support through the expansion of Digital Public Infrastructure, promotion of Global Capability Centres (GCCs), Medical Value Travel, development of the Orange Economy, strengthening of artificial intelligence and digital ecosystems, along with initiatives to improve skill development and workforce employability. 
She said the Union Budget 2026-27 announced several new initiatives to unlock growth in the services sector. These include establishing the National Institute of Hospitality, developing Regional Medical Hubs, expanding Allied Health Professional institutions, setting up Animation, Visual Effects, Gaming and Comics (AVGC) Content Creator Labs and supporting the development of university townships. 
In the agriculture sector, the government's focus remains on improving productivity by encouraging investment in irrigation, technology adoption, digital agriculture, crop diversification, post-harvest infrastructure and better market access for farmers. 
The Finance Minister also noted that recent Union Budgets have identified strategic sectors such as semiconductors, electronics, biopharmaceuticals, rare earths, chemicals, capital goods, clean energy and advanced manufacturing as key drivers of India's future economic growth. 
She added that these initiatives are being complemented by the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme, which aims to build an industry-ready workforce equipped with skills required for emerging sectors. 
According to Sitharaman, the combined impact of these policy measures is expected to strengthen India's medium-term growth prospects while supporting the country's long-term objective of becoming a developed nation under the Viksit Bharat 2047 vision. 
In a separate reply to another question in the Rajya Sabha, the Finance Minister said banks registered 2,15,709 cases under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, during FY25. The total amount involved in these cases stood at INR 1,03,180 crore, out of which banks recovered INR 32,466 crore. 
Source PTI