India to Become World's Third Largest Economy by 2030: S&P Global

As per S&P Global Market Intelligence's latest PMI report, India is on track to overtake Japan and Germany as the world's third-largest economy by 2030, with a GDP of $7.3 trillion.

India currently has the world's fifth-largest economy, with a GDP of $3.7 trillion in 2023-24. In 2022, it will overtake the United Kingdom as the world's fifth-largest economy. According to S&P, the Indian economy has continued to show sustained strong growth during the 2023 calendar year, following two years of rapid economic growth in 2021 and 2022.

"India's nominal GDP in US dollars is expected to increase from USD 3.5 trillion in 2022 to USD 7.3 trillion by 2030." With this rate of economic growth, India's GDP would surpass that of Japan by 2030, making India the second-largest economy in the Asia-Pacific region. By 2022, India's GDP had already surpassed that of the United Kingdom and France. India's GDP is also expected to surpass Germany by 2030," writes Rajiv Biswas, Asia Pacific Chief Economist at S&P Global Market Intelligence, in a recent report titled "India's Manufacturing Output Surges While Inflation Pressures Ease."

China currently has the largest economy on the Asian continent.

According to S&P, India's GDP growth rate increased to 7.8% year on year in the April-June quarter of 2023, up from 6.1% year on year in the January-March quarter of 2023. Private consumption increased by 6.0% year on year in the April-June quarter of 2023, up from 2.8% in the previous quarter and India's industrial production increased by 10.3% year on year in August 2023, compared to 6% in July. Manufacturing, electricity output, and capital goods output all increased rapidly.