Shillong, October 24: India is on track to become the world’s third-largest economy, with its GDP projected to double to $7.3 trillion by 2030, according to the latest S&P Global Market Intelligence report.
The report predicts, “India’s nominal GDP, measured in USD terms, is set to rise from $3.5 trillion in 2022 to $7.3 trillion by 2030. This rapid economic expansion will see India’s GDP surpass Japan’s by 2030, making it the second-largest economy in the Asia-Pacific region.”
As per IANS, at present, Japan holds the position of the third-largest global economy, following the US and China.
India’s economic growth has been accelerated by increased foreign direct investment over the past decade, driven by a promising long-term growth outlook, a youthful demographic profile, and the rapid growth of urban household incomes.
By 2022, India’s GDP had already surpassed that of the UK and France, and by 2030, it is expected to surpass Germany as well, according to the report.
The International Monetary Fund’s projections also indicate that Japan’s nominal GDP will be overtaken by Germany this year, relegating Japan from the third to the fourth position in the world on a US dollar basis.
India’s performance in the emerging market sector has been notable, with private sector sales growing at the second-fastest pace in over 13 years, supporting overall output expansion.
While robust growth was reported in Russia, mainland China’s expansion slowed, and Brazil slipped back into contraction, according to S&P’s findings.
The report also highlights that global economic expansion has been decelerating, reaching its slowest pace in eight months at the end of the third quarter. The situation may worsen, as global new orders declined for the first time since January, and backlogs of work also decreased significantly, signaling potential weaknesses in the coming months.