Indian economy to be Asia’s No. 2 by ’30
NEW DELHI: India is likely to overtake Japan as Asia’s second-largest economy by 2030 when its GDP is also projected to surpass that of Germany and the UK to rank as world’s No.3, IHS Markit said in a report on Friday.
Currently, India is the sixthlargest economy in the world, behind the US, China, Japan, Germany and the United Kingdom. “India’s nominal GDP measured in USD terms is forecast to rise from $2.7 trillion in 2021 to $8.4 trillion by 2030,” IHS Markit Ltd said. “This rapid pace of economic expansion would result in the size of Indian GDP exceeding Japanese GDP by 2030, making India the second-largest economy in the Asia-Pacific region.” By 2030, the Indian economy would also be larger in size than the largest Western European economies of Germany, France and the UK.
“Overall, India is expected to continue to be one of the world’s fastest-growing economies over the next decade,” it said.
The long-term outlook for the Indian economy is supported by a number of key growth drivers.
“An important positive factor for India is its large and fastgrowing middle class, which is helping to drive consumer spending,” IHS Markit said, forecasting that the country’s consumption expenditure will double from $1.5 trillion in 2020 to $3 trillion by 2030.
For the full fiscal year 2021-22 (April 2021 to March 2022), India’s real GDP growth rate is projected to be 8.2%, rebounding from the severe contraction of 7.3% year-on-year in 2020-21, IHS Markit said. The Indian economy is forecast to continue growing strongly in the 2022-23 fiscal year, at a pace of 6.7%.
The rapidly growing domestic consumer market as well as its large industrial sector have made India an increasingly important investment destination for a wide range of multinationals in many sectors, including manufacturing, infrastructure and services.