According to the latest report from S&P Global Market Intelligence, India is poised to ascend in the global economic hierarchy, with projections indicating that it will likely surpass Japan and become the world’s third-largest economy by 2030. S&P’s report anticipates India’s GDP to double, reaching $7.3 trillion by the end of this decade, a substantial increase from the $3.5 trillion recorded in 2022.
The report highlights that this rapid economic growth would propel India’s GDP past Japan’s by 2030, establishing India as the second-largest economy in the Asia-Pacific region. The report attributes India’s economic expansion to a significant increase in foreign direct investment inflows over the past decade, which reflects the nation’s promising long-term growth prospects. Several factors contribute to this growth, including India’s youthful demographic profile and the substantial rise in urban household incomes.
Notably, India had already surpassed the GDP of both the United Kingdom and France by 2022. The report predicts that by 2030, India’s GDP will also outstrip that of Germany.
These projections align with forecasts from the International Monetary Fund, suggesting that Japan’s nominal GDP is set to be overtaken by Germany this year, causing Japan to slip from the third to the fourth position in the global rankings based on the US dollar.
The report emphasizes the ongoing deceleration of the global economic environment, with indications of weakness such as the contraction of new orders, the significant decrease in backlogs of work, and potential challenges in the coming months.
