India has been projected to overtake Japan as Asia-Pacific’s second largest economy and third-largest overall by 2030, according to a report by IHS Markit, the London-based
financial intelligence information provider.
Indian nominal GDP currently stands at USD 3.1 trillion. India’s nominal GDP will almost quadruple from USD 2.7 trillion in 2021 to USD 8.4 trillion by 2030, surpassing Japanese GDP, according to the IHS Markit report . The Indian economy will also likely surpass the British and the German economy in nominal terms within the same timeframe.
“An important positive factor for India is its large and fast-growing middle class, which is helping to drive consumer spending,” IHS Markit report said. The report further notes that the national consumer spending will double from USD 1.5 trillion in 2021 to USD 3 trillion in 2030.
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As per the latest report by the government, India is likely to grow by 9.2 percent for financial year 2021/22 (FY22) which, if achieved, will be the highest annual GDP growth rate clocked by the country in 17 years. The nominal GDP is estimated to grow by 17.6 percent. The HIS report further said that the Indian economy will likely grow at 6.7 percent for FY23.
The government has been focusing on speeding up the rate of industrialization across the country with policies aiming at ease of doing business across different sectors. Its PLI (Production-Linked Incentive) scheme has shown progress with India clocking record USD 300 billion merchandise exports from April to December 2021 and expected to reach USD 400 Billion by the end of the current fiscal, said the Commerce Minister Piyush Goyal. India will soon begin negotiations for trade deals with Canada and Israel and are about to conclude an interim trade deal with Australia.
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India is currently the sixth largest economy in the world, behind the U.S., China, Japan, Germany and the United Kingdom. IHS Markit Ltd is a financial intelligence information provider headquartered in London.
