Indian economy to be third largest by 2030

Several reports and projections, indicate that India is on its way to becoming the third-largest economy in the world by 2030. This is a significant milestone for the country and reflects its strong economic performance in recent years.

India's nominal GDP is expected to rise from $3.5 trillion in 2022 to $7.3 trillion by 2030. This will surpass Japan and make India the world's third-largest economy behind the United States and China. India's GDP is projected to grow by 7% in the fiscal year 2026-27. This makes it one of the fastest-growing major economies in the world.

Recent reports like:

· S&P Global Ratings says - In December 2023, S&P Global Ratings predicted that India's nominal GDP will rise from $3.5 trillion in 2022 to $7.3 trillion by 2030, surpassing Japan and becoming the world's third-largest economy. They also forecasted a 7% GDP growth in the fiscal year 2026-27.

· IMF says - The International Monetary Fund (IMF) projected in its October 2023 World Economic Outlook that India's GDP will grow by 6.8% in 2023 and 6.1% in 2024, making it one of the fastest-growing major economies in the world….where as

· World Bank says: The World Bank in its October 2023 South Asia Economic Focus report stated that India's economy is expected to grow by 7% in the fiscal year 2023-24, driven by strong domestic demand and a rebound in exports.

The key points from the S&P Global Ratings report are:

· Several factors contributing to India's economic growth, including:

o A large and young population

o Favourable economic policies

o Technological advancements

o Growing domestic demand

· However, India also faces some challenges, such as:

o High inflation

o Unemployment

o Infrastructure bottlenecks

o Geopolitical risks

Despite these challenges, the Indian economy is projected to continue its strong growth trajectory in the coming years. This will be driven by a number of factors, including:

· Continued investment in infrastructure

· A growing middle class with rising disposable income

· A focus on innovation and technology

· Favourable demographics with a large young population

Overall, the Indian economy is projected to continue its strong growth trajectory in the coming years. While the road ahead will not be without its challenges, India's future as a major economic powerhouse seems bright.