India Set to Surpass Japan as Asia’s 2nd Largest Economy by 2030: S&P Global Predicts
In a recent report by S&P Global Market Intelligence, India, currently the world’s fifth-largest economy, is poised to overtake Japan and become the third-largest economy globally with a projected GDP of $7.3 trillion by 2030. This positive outlook for India’s economic growth follows two years of rapid expansion in 2021 and 2022, with the trend continuing throughout 2023.
S&P Global anticipates India’s GDP to grow between 6.2% to 6.3% in the fiscal year ending March 2024, positioning it as the fastest-growing major economy in that period. Notably, the Indian economy achieved an impressive 7.8% growth rate in the April-June quarter of this year.
This robust growth can be attributed to the sustained expansion of domestic demand, foreign direct investments inflow, and other critical drivers. India’s favorable long-term economic growth prospects are reinforced by its youthful demographic profile and rapidly increasing urban household incomes.
The report predicts that India’s nominal GDP in USD will jump from $3.5 trillion in 2022 to $7.3 trillion by 2030, surpassing Japan’s GDP. Currently, the United States boasts the largest global economy, with a GDP of $25.5 trillion, followed by China at $18 trillion. Japan is in a distant third place with a GDP of $4.2 trillion.
The growth drivers for India’s economy include a burgeoning middle class, substantial industrial sectors, and a digital transformation that is set to revolutionize the retail and consumer market landscape in the coming decade. The rise of e-commerce, facilitated by increased internet access and smartphone technology (4G and 5G), has attracted global tech giants and investors.
Re-reported from the article originally published in The News 18 English
