The growth of the Indian Economy will surpass in the upcoming year which will surely help the nation to get a higher position in the list of ‘‘Largest Economy”. This forecast has been shared in the latest report of S&P Global Market Intelligence in which they state that India will surpass Japan and will hold the rank 3rd by 2030 on the list of the world’s largest economies. The S&P report has stated that the Gross Domestic Product (GDP) of India is projected to double and in the upcoming years, India will soon touch $7.3 million. The GDP of India is $3.5 trillion as of 2022 and by the end of this decade, it will be doubled.
The S&P Global Market Intelligence report states that “This rapid pace of economic expansion would result in the size of the Indian GDP exceeding the GDP of Japan by 2030.” If this forecast actually becomes true, then India will become the 2nd largest economy in the Asia-Pacific region. At present, India is ranked in 5th position and as per this forecast it will seize the rank of Japan. This is the result of the rapid economic growth of India in 2021 and 2022 and the economy of India has continued to show upheld growth during the 2023 calendar year. The GDP of India is expected to rise by 6.2-6.3 per cent in the fiscal year concluding in March 2024 which is the fastest-growing major economy this fiscal year.
The third-biggest economy in Asia experienced phenomenal growth in the April–June quarter, rising by 7.8%. S&P Global states that “The forthcoming economic outlook is for continued fastest expansion at the time of the remainder of 2023 and for 2024, supported by strong growth in domestic demand. Furthermore, the report of S&P attributes the economic growth to a notable acceleration of foreign direct investment influx over the past 10 years which reflects the profitable long-term growth prospects. According to the reports, this growth is contrived by factors such as a youthful demographic profile and the fast growth in urban household wages.
Note that India had already overtaken the GDP of both France and the United Kingdom. Moreover, the GDP of India is also predicted to overtake Germany’s GDP. This prediction is shared by the forecast of the International Monetary Fund that the nominal GDP of Japan is ready to be overtaken by Germany in 2023 and due to that Japan’s rank will drop down means Japan will stand in the 4th position in the global rankings based on the United States dollar. Besides, the report states that “The nominal GDP of India measured in USD terms is predicted to increase from USD 3.5 trillion in 2022 and by 2030 it will be USD 7.3 trillion. At present, the US is the largest economy in the world with a GDP of USD 25.5 trillion.
Whereas, China is standing in 2nd rank of the World’s largest economy with the help of its GDP size which is around USD 18 trillion. As of now, Japan is standing in 3rd position with a GDP of USD 4.2 trillion and Germany is standing in 4th position with a GDP size of around USD 4 trillion. S&P Global states that the long-term outlook for the economy of India is supported by several key factors that helped the nation to increase its growth. “India’s sizable and rapidly expanding middle class, which is boosting consumer spending, is a significant plus. India is becoming an increasingly important investment destination for a wide range of multinationals in several areas, including manufacturing, infrastructure, and services, according to the statement. These sectors include the country’s rapidly expanding domestic consumer market and its sizable industrial sector.