Business Desk: Finance Minister Nirmala Sitharaman expressed confidence that by 2027, India will surpass Japan and Germany to become the world’s third-largest economy. Addressing the ‘Indo-Pacific Regional Dialogue’ on Wednesday, Sitharaman stated that despite global challenges, India’s economic growth rate is expected to remain slightly below 7% this year. It is among the highest in the world and surpasses that of major economies. She mentioned that India’s economy is on the right path and progressing towards a bright future.
Sitharaman highlighted that amid contemporary conflicts affecting the Indo-Pacific, such as the Ukraine war, the crises in Israel, Yemen, and tensions in the South and East China Sea, India’s economy is in a better position amid disruptions in supply chains and economic instability. According to the International Monetary Fund (IMF) estimates, she stated that India is poised to become the world’s third-largest economy by 2027, surpassing Japan and Germany. At that time, India’s Gross Domestic Product (GDP) is expected to exceed $5 trillion. India aims to become a developed economy by 2047.
Regarding India’s blue economy (marine economy), Sitharaman noted that it contributes to about four percent of the total GDP. With nine coastal states and four union territories located along the coast, India has more than 12 major and over 200 non-major ports. It boasts an extensive network of waterways for international and domestic trade. According to UNCTAD, in 2020, India had the second-largest export of ocean-based goods and services among developing countries.
Emphasizing the economic dynamism of the Indo-Pacific region, Sitharaman stated that it accounts for 60% of the global GDP and nearly 50% of global trade in goods and services. She highlighted India’s improved international ranking in export matters, moving from 44th place in 2014 to 22nd place in 2023. The minister emphasized that India’s turnaround time at ports is now only 0.9 days, comparable to established maritime centers like
