NEW DELHI: India’s ambition of becoming a $5-trillion economy will take longer than earlier thought, according to the latest projections by the International Monetary Fund (IMF). The delay has been attributed to slower nominal GDP growth and sharper depreciation of the rupee.

India initially aimed to achieve the $5-trillion milestone by 2024-25, before revising the target to 2027-28. However, the IMF now estimates the economy to cross the $4-trillion mark only in FY26 and reach $4.96 trillion in FY28, falling short of the goal.

India is projected to hit $5.46 trillion by FY29 and cross $6 trillion in 2030.

The rupee’s weakness has particularly weighed on dollar-denominated GDP figures. The currency has depreciated 4.26% so far this year. Lower inflation has also slowed growth in nominal GDP, calculated at current market prices.

Subhash Chandra Garg, former finance and economic affairs secretary, warned that missing the target timeline could indicate the “Indian economy becoming stuck in the lower middle-income trap.”