“The near-term economic outlook is for continued rapid expansion during the remainder of 2023 and for 2024, underpinned by strong growth in domestic demand,” said S&P Global
India, the fifth-largest economy in the world, is anticipated to pass Japan and become the third-largest economy in the world by 2030 with a GDP of USD 7.3 trillion, acccording to S&P Global Market Intelligence’s most recent issue of PMI.
The Indian economy showed two consecutive years of strong, sustained growth in 2021 and 2022, and it has continued to do so in 2023.
The fastest-growing global economy in this fiscal year is likely to be India, whose gross domestic product (GDP) is predicted to increase by 6.2 to 6.3 per cent in the fiscal year that ends in March 2024. The third-largest economy in Asia experienced a stunning 7.8 per cent growth in the April-June quarter.
“The near-term economic outlook is for continued rapid expansion during the remainder of 2023 and for 2024, underpinned by strong growth in domestic demand,” said S&P Global.
The recent acceleration of FDI into India is a reflection of the country’s positive long-term growth prospects, which are supported by a youthful population profile and fast expanding urban household incomes.
“It is projected that India’s nominal GDP, expressed in USD, will increase from USD 3.5 trillion in 2022 to USD 7.3 trillion in 2030. By 2030, the size of the Indian GDP would surpass that of Japan due to the country’s strong economic growth, making India the second-largest economy in the Asia-Pacific region, according to the report.
By 2022, the Indian GDP was already larger than the GDPs of France and the UK combined. India’s GDP is anticipated to exceed Germany by 2030.
The long-term forecast for the Indian economy, according to S&P Global, is underpinned by a number of important growth factors.
“India’s sizable and rapidly expanding middle class, which is assisting in driving consumer expenditure, is a significant positive aspect. India is becoming an increasingly important investment destination for a wide range of multinationals in several industries, including manufacturing, infrastructure, and services,” according to the report. This is due to the country’s rapidly expanding domestic consumer market as well as its sizable industrial sector.
The present digital transformation of India is predicted to drive the rise of e-commerce, altering the retail consumer market landscape during the next decade. According to S&P Global, this is bringing global multinationals in technology and e-commerce to the Indian market.
Overall, India is expected to continue to be one of the world’s fastest-growing economies over the next decade.