TL;DR : Finance Minister Nirmala Sitharaman said India needs to grow at 8% every year to become a developed country by 2047. She explained this goal at an economic conference and said the government’s approach combines self-reliance with global cooperation.
Key Points from FM Sitharaman’s Statement at KEC 2025
- Target of 8% Growth:
- Vision of Viksit Bharat 2047:
- Twin-Track Strategy:
- Self-reliance through Aatmanirbhar Bharat policies
- Global engagement to stay open to trade and investment
- Clarification on Self-Reliance:
- Global Context and Risks:
- Investment and Reform Needs:
- Economic Performance So Far:
Finance Minister Nirmala Sitharaman said, “We cannot go on at GDP growth speed of 4% or 5% or 5.5%. 8% GDP growth will give us the speed to reach the destination by 2047,” during her speech at the Kautilya Economic Conclave on October 3, 2025.
She said 8% annual growth is needed for India to become a developed country by its 100th year of independence in 2047, as outlined in the “Viksit Bharat” vision set by Prime Minister Narendra Modi.
The strategy includes:
FM clarified, “It does not mean we want to shut our economy for the outside world and look inward.”
FM said, “The very foundations of the global order are shifting beneath our feet… The international order is morphing. Trade flows are being reshaped, alliances are being tested.”
She added that today’s uncertainty is structural, not temporary.
To support 8% growth, India needs to raise its investment rate to 35% of GDP and continue reforms in labor, land, and taxation. This aligns with the Economic Survey 2024-25.
India recorded 8.2% GDP growth in FY 2023-24. The projected growth for FY 2024-25 is around 7.8%, forming a strong base for the 2047 goal.