The South Asian country’s GDP is expected to reach $10 trillion by the end of the decade
India is on track to become the third-largest economy in the world by 2031, according to S&P Global. It is currently the fifth-largest economy in the world, behind the US, China, Japan, and Germany. Analysts expect the country to become a $10 trillion economy by the end of this decade.
S&P forecasts 6.7% annual GDP growth for the country in its latest report. According to government data, GDP expanded by 8.2% in fiscal year 2023-24 and 7.2% in the prior fiscal year, solidifying India’s position as the world’s fastest-growing major economy.
Earlier this month, the World Bank raised its growth forecast for India to 7% for the current fiscal year, up from 6.6%. This revision reflects expectations of stronger economic performance, supported by factors including private consumption and investment.
The report notes that while the economy shows resilience, achieving the ambitious goal of $1 trillion in merchandise exports by 2030 will require strategic diversification and greater integration into global value chains.
This update echoes similar optimism from the IMF, which also revised its growth projection for the current fiscal year for India to 7% in July, an increase of 20 basis points. The IMF highlighted a significant rise in private consumption as a key factor driving this adjustment.
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