India Set to Overtake as World's 3rd Largest Economy: Ashwini Vaishnaw

In a few years, India will be the world's third most developed economy. Addressing the media on Tuesday, Union Minister of Information and Broadcasting, Railways, and Electronics and Information Technology Ashwini Vaishnaw, citing data from the IMF's World Economic Outlook report, said the country would grow into the fastest-growing economy in 2024 with its projected growth rate of 7 percent. That puts it ahead of China, expected to grow at five percent.

As the current largest economy with a US dollar economy valuation of $28.8 trillion, the United States is expected to grow at only 2.6 percent-that positions it seventh in the lineup of economic growth.

The other included in the top 10 fastest-growing economies of the world are Indonesia, expected to grow at a rate of 5 percent and place the country in third-fastest-growing economy in the world, followed by Turkey, 3.6 percent; Russia, 3.2 percent; Poland, 3.1 percent; and Spain at 2.4 percent; while Mexico completes the top 10 fastest-growing economies in the world with its projected growth rate at 2.2 percent.

It had last month revised its forecast for India's GDP growth in 2024-25 to 7% against the earlier estimate of 6.8%. But the upward revision for India reflects stronger-than-anticipated growth in 2023 and a better outlook for private consumption, especially in rural areas," the IMF said in its World Economic Outlook report. In contrast, its projection for growth in advanced economies of the US is 2.6 percent in 2024, slipping to 1.9 percent in 2025.

Growth in Japan is forecasted at 0.7 percent in 2024, with a slight improvement to 1 percent in 2025. For the Eurozone, its GDP growth is pegged at 0.9 percent for 2024 and speeding up to 1.5 percent in 2025. Overall, world economic growth in both 2024 and 2025 is still estimated to remain at 3.2 and 3.3 percent, respectively, as projected this year in the World Economic Outlook.

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