Indian Economy: With a projected GDP of $7.3 trillion by 2030, India, the fifth-largest economy in the world, is expected to overtake Japan to take the third spot. This information comes from the most recent research from S&P Global Market Intelligence. The Indian economy has continued to grow strongly in 2023 after two years of exceptionally robust growth in 2021 and 2022, it continued.
India’s Projected GDP Growth and Positive Economic Outlook for 2023 and 2024
In the fiscal year that ends in March 2024, India’s gross domestic product (GDP) is predicted to rise by 6.2–6.3 percent, making it the fastest-growing major economy of the year. Notably, during the April–June quarter, India’s economy expanded by an astounding 7.8 percent. According to PTI, S&P Global sees a strong near-term economic outlook, with rapid expansion expected to continue for the rest of 2023 and 2024 due to strong domestic demand. It further stated that India’s excellent long-term economic prospects, supported by a youthful demographic profile and rising urban household incomes, are reflected in the FDI inflow that has occurred over the last ten years.
Overtaking Japan and European Powers by 2030
According to the analysis, nominal GDP (measured in US dollars) for India is expected to increase from $3.5 trillion in 2022 to $7.3 trillion by 2030. With this quick growth, India’s economy will overtake Japan to become the second largest in the Asia-Pacific area. India’s GDP surpassed that of the UK and France by 2022, and it is predicted to overtake Germany by 2030.Presently, the GDP of the United States stands at $25.5 trillion, making up a quarter of the global GDP, making it the largest economy in the world. With a GDP of almost $18 trillion, or 17.9% of the global GDP, China is ranked second in the world. With a GDP of $4.2 trillion, Japan is the third-largest economy, and Germany comes in fourth with a $4 trillion GDP.
Factors Fueling India’s Economic Rise
S&P Global lists numerous important factors that are favourable to India’s long-term economic prospects. These include a burgeoning local consumer market, a fast expanding middle class that drives consumer spending, and significant investments made by international firms across a range of industries, including manufacturing, infrastructure, and services. Furthermore, e-commerce is expected to expand more quickly in India due to its continuing digital transformation, which will change the retail consumer market over the next ten years. According to the S&P research, this shift has drawn major international technology and e-commerce companies to invest in the Indian market. According to the report, there will be 1.1 billion internet-connected Indians by 2030, which is a more than twofold increase from the projected 500 million internet users in 2020.
India’s Strong FDI Inflows and Multinational Corporations’ Confidence in its Future
Even in the midst of the epidemic years of 2020–2022, India has continued to see strong FDI inflows during the last five years. It further stated that FDI inflows from manufacturing enterprises and investments from multinational corporations (MNCs) involved in global technology are driving this growth. Over the next ten years, India’s economy is expected to continue growing at one of the fastest rates in the world, making it an important long-term growth market for multinational corporations in a variety of sectors, including manufacturing, banking, insurance, asset management, healthcare, and information technology.
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