India is expected to overtake Japan as Asia’s second-largest economy by 2030, while its GDP is also expected to overtake that of Germany and the United Kingdom to rank third in the world, IHS Markit said in a report on Friday.
Currently India is the sixth largest economy, behind the United States, China, Japan, Germany and the United Kingdom
“India’s nominal GDP … is expected to grow from $ 2.7 trillion in 2021 to $ 8.4 trillion by 2030,” said IHS Markit. “This rapid pace of economic expansion would translate into a size of India’s GDP exceeding Japan’s GDP by 2030, making India the second-largest economy in the Asia-Pacific region.” By 2030, India’s economy would also be larger than the largest economies in Western Europe, Germany, France and the UK.
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 rapidly growing middle class, which is helping to boost consumer spending,” said IHS Markit, predicting that the country’s consumer spending would double from 1.5 trillion to $ 1.5 trillion. dollars in 2020 to $ 3 trillion by 2030.
For the full year 2021-2022, India’s real GDP growth rate is expected to be 8.2%, rebounding from the severe 7.3% year-on-year contraction in 2020-21, a said IHS Markit.
The Indian economy is expected to continue to grow strongly during fiscal year 2022-2023, at a pace of 6.7%.
The rapidly growing consumer market along with its large industrial sector has made India an increasingly important investment destination for multinationals in many sectors including manufacturing, infrastructure and services.