India, currently ranked as the fifth-largest global economy, is set to surpass Japan, taking the third spot with an anticipated GDP of $7.3 trillion by 2030, according to a recent report from S&P Global Market Intelligence.
Following two consecutive years of robust economic advancement in 2021 and 2022, India’s economy has consistently showcased growth throughout 2023. The report suggests that India’s GDP growth will be in the range of 6.2 percent to 6.3 percent for the fiscal year ending March 2024. This positions India as the most rapidly expanding major economy for the year, underlined by a remarkable growth rate of 7.8 percent from April to June.
S&P Global underscores an optimistic economic forecast for the immediate future. The expected expansion in 2023 and 2024 is attributed to substantial domestic demand. In addition, the consistent rise in foreign direct investments (FDI) over the past ten years showcases India’s promising long-term economic future. This is further strengthened by its young population and growing urban household earnings.
It’s anticipated that India’s GDP, in USD terms, will leap from $3.5 trillion in 2022 to $7.3 trillion by 2030. This swift growth will place India ahead of Japan, making it the second-largest economy in the Asia-Pacific region. By 2022, India had already outstripped the UK and France in terms of GDP. By the end of this decade, it’s poised to overtake Germany as well.
United States currently leads as the globe’s dominant economy with a GDP tallying $25.5 trillion. China follows in second place with its GDP nearing $18 trillion. Japan and Germany come next, with respective GDPs of $4.2 trillion and $4 trillion.
The report by S&P Global points to multiple factors fueling India’s economic rise. A burgeoning middle class, escalating domestic consumer demand, and hefty multinational investments in diverse sectors like manufacturing and infrastructure are paramount among these factors.
India’s digital evolution is anticipated to expedite the e-commerce sector’s growth, dramatically altering the country’s retail landscape within the next ten years. This digital shift has magnetized leading global technology and e-commerce firms towards the Indian market. Projections suggest that by 2030, internet accessibility will encompass 1.1 billion Indian users, a significant upswing from the 500 million in 2020.
