India's economy will reach $3.5 trillion by the end of the 2022/23 fiscal year and $7 trillion within the next seven years, according to Chief Economic Advisor, V Anantha Nageswaran.

Previously the government said India would become a $5 trillion economy by 2025.

Nageswaran said at a recent MCCI event that the 2023 calendar year started in the context of the ongoing conflict between Russia and Ukraine, which will "create geo-political and geo-economic uncertainties."

Another key factor is China reopening its borders after two years and the effect this will have on the global economy. In particular, declining oil and commodity prices and also the growth of the U.S. and European economies, Economic Times reports.

The Chief Economic Advisor went on to say that India's GDP will be $3.5 trillion at current prices by the end of 2022/23.

"Indian economy will be $7 trillion in the next seven years, which is not impossible," Nageswaran stated.

He added that the most important factor is the United States is forecast to reduce interest rates in 2024 or 2025, which will impact the Indian Rupee.\

In addition, the National Statistical Office has predicted that the country's economic growth in 2022/23 will hit 7% in real terms and 15.4% in nominal terms, the Chief Economic Advisor continued.

Nageswaran also stated that the realistic medium-term growth is 6.5% compared to 8% or 9% registered between 2003 and 2008, the Economic Times report adds.

Whereas in its most recent Global Economic Prospects report, the World Bank forecasts India's economic growth will slow to 6.6% in the 2023/24 financial year from a predicted 6.9% in the current fiscal year. The report states that the global economy and heightened uncertainty will weigh on India's export and investment growth.