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NEW DELHI: India, the world’s fifth largest economy in the world, is likely to overtake Japan to become Asia’s second largest economy with a GDP of $ 7.3 trillion by 2030, S&P Global Market Intelligence said in its latest issue.
After two years of rapid economic growth in 2021 and 2022, the Indian economy has continued to show sustained strong growth during the 2023 calendar year.
India’s gross domestic product (GDP) is expected to grow 6.2-6.3 per cent in the fiscal year ending in March 2024, being the fastest-growing major economy this fiscal year. Asia’s third-largest economy grew by a stellar 7.8 per cent in the AprilJune quarter.
Rapid expansion
“The near-term economic outlook is for continued rapid expansion during the remainder of 2023 and for 2024, underpinned by strong growth in domestic demand,” S&P Global said.
The acceleration of foreign direct investment inflows into India over the past decade reflects the favourable long-term growth outlook for the Indian economy, helped by a youthful demographic profile and rapidly rising urban household incomes.
The report forecasts that India’s nominal GDP, measured in USD terms, will rise from $3.5 trillion in 2022 to $7.3 trillion by 2030. This rapid expansion will position India as the second-largest economy in the Asia-Pacific region, surpassing Japan. By 2022, India had already exceeded the GDP of the UK and France, and by 2030, it is expected to surpass Germany.
As of now, the United States remains the world’s largest economy with a GDP of $25.5 trillion, representing a quarter of the world’s GDP. China holds the second-largest spot with a GDP of approximately $18 trillion, nearly 17.9 percent of the world GDP. Japan follows as the thirdlargest economy with a GDP of $4.2 trillion, and Germany is fourth with a GDP of $4 trillion.
