INDIA’S economy is booming and is likely become the second-largest economy in the Asia Pacific Region, and the third largest global economy, by 2030.
S&P Global predicts India’s GDP will hit USD 7.3 trillion by 2030, overtaking Japan.
This is backed by strong economic growth in 2021, and 2022, and continued momentum in 2023. For the fiscal year ending March 2024, India’s GDP is set to grow by 6.2% to 6.3%, making it the fastest-growing major economy.
Strong domestic demand, marked by a 7.8% surge in April-June, fuels this growth.
India’s appeal to foreign direct investment or FDI, driven by a youthful population and rising urban incomes, plays a significant role.
S&P Global projects India’s GDP will double from USD 3.5 trillion in 2022 to USD 7.3 trillion by 2030, making it Asia’s second-largest economy, ahead of Japan.
In 2022, India had already surpassed the UK and France in GDP, and by 2030, it’s expected to surpass Germany too.
The global economic hierarchy currently features the United States at the top, followed by China, Japan, and Germany.
Key growth drivers include a growing middle class, a robust domestic consumer market, multinational companies’ interest, and the digital revolution driving e-commerce.
India’s consistent inflow of FDI, notably from global tech giants, has been vital.
Even during the pandemic years of 2020-2022, FDI remained strong, with a focus on manufacturing.
The digital transformation is set to double internet users to 1.1 billion by 2030, attracting tech and e-commerce firms.
India to become third-largest Global Economy by 2030
India’s promising growth trajectory signifies its emergence as a significant player in Asia and the global economy by 2030.
Meanwhile, India is currently the fifth-largest economy in the world.
