India will be The Third Biggest Economy By 2028, Developed Nation By 2047

India's Economic Growth [Credit-I. Times] 

Renowned Global Market Intelligence, S&P, said in its latest issue [PMI] that the Indian GDP will take over Japan, the second largest economy in the Asia-Pacific region, by 2030. The world's 5th largest economy will beat Japan with a GDP of USD 7.3 trillion.

Indian economy performed well and showed rapid growth in 2021 and 2022. On a strong foundation basis, it continues to show sustained and strong growth during the 2023 calendar year and 2024.

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Assessment of GDP by Finance Minister Nirmala Sitharaman:

Finance Minister Nirmala Sitharaman exuded confidence that India will become the World's third-largest economy worth over $5 trillion by the 2027-28 financial year. She added that India will be a developed nation by 2047, with a GDP of $30 trillion estimated.

Sitharaman explained that during the 'Amritkal', which marks 100 years of India's Independence in 2047, the focus is being given to sunrise industries. The FDI policy of the Narendra Modi Government has attracted foreign investment of $595 billion in the last 9 years.

Finance Minister Nirmala Sitharaman [Credit-Mint]

She stressed that the people of India have met with the challenges post-COVID-19. The recovery is on a strong footing and Gujarat will be the engine of growth in India's march to become a developed nation in 'Amrit-Kal' [2022-2047].

Sitharaman said that India is on track to become an in-house producer of semiconductors, and EV adoption is happening at a vast level. India has attracted $ 919 billion in FDI of which $ 595 has come in the last 8-9 years only.

The FDI is coming not only in the manufacturing but also in the service sector as well. She took note of financial inclusion and said 80% of people have bank accounts. The number of bank account holders has increased to 50 crores from 15 crores in 2014.     

Trajectory of Indian GDP Over Japan:

India's gross domestic product (GDP) to take over Japan and is expected to grow 6.2-6.3 percent in the current fiscal year ending in March 2024. It will be the fastest-growing major economy this fiscal year. Asia's third-largest economy, India, grew by a stellar 7.8 percent in the April-June quarter.

S&P Global said in its MPI issue, "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."

Indian Economy at the World Level [Credit-Entrepreneur]

 The issue further added that India's GDP, in USD terms, is forecast to rise from USD 3.5 trillion in 2022 to USD 7.3 trillion by 2030. This rapid pace of economic expansion will result in the size of the Indian GDP and will exceed the Japanese GDP by 2030.

Currently, the US is the world's largest economy with a GDP of USD 25.5 trillion, roughly a quarter of the world's GDP. China is in second position with a GDP size of about USD 18 trillion. Japan is far behind third with USD 4.2 trillion GDP, followed by Germany with USD 4 trillion GDP.

Key Factors of Indian GDP:

S&P Global stated several key growth drivers for the long-term outlook of the Indian economy.

1. An important and positive factor is the large and fast-growing middle class.  A strong foundation for helping to drive consumer spending. India set the path for rapid growth in the domestic consumer market and its large industrial sector. 

2. The digital transformation of India that is currently underway is another key factor in accelerating the growth of e-commerce. It has been changing the retail consumer market landscape over the next decade. 

3. India's strong FDI inflows have been boosted by large inflows of investments from global technology MNCs such as Google and Facebook. Investment policies have attracted India's large, fast-growing domestic consumer market and a strong upturn in foreign direct investment inflows from world-renowned manufacturing firms.

Indian Economy Positive Signals [Credit-The Economic Times]

India, overall, is expected to continue to be one of the world's fastest-growing big economies over the next decade. According to analysts and S&P reports, the Indian GDP will take over Japan by 2030 based on facts and figures. 

It will make India a trusted market for multinationals in a wide range of industries, including manufacturing industries such as autos, electronics, and chemicals to services industries such as banking, insurance, asset management, health care, and information technology.

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