India, which is now the fourth-largest economy in the world, is set to become the third-largest by 2030 with a GDP of $7.3 trillion, the Union Government declared on Saturday.
"India is projected to reach a GDP of Rs 4,26,45,000 crore ($5 trillion) by 2027 and is on course to surpass Germany by 2028. By 2030, India is set to become the world’s third-largest economy with a projected GDP of $7.3 trillion," the government said.
This comes after India's GDP growth raced to a robust 7.8 percent during the first quarter (April-June) of the ongoing financial year compared to 6.5 percent over the same period of FY 2024-25, as per data made public by the Ministry of Statistics.“India’s strong services activity has helped GDP growth comfortably beat expectations for the second quarter in a row, rising to an impressive high of 7.8 per cent for April-June 2025. The swift growth in the first quarter of the current financial year further consolidates India’s position as the world’s fastest-growing major economy,” the government said.
As inflation moderated, employment picked up, and consumer sentiment continued to hold firm, private consumption is likely to keep fueling GDP growth in the near term.
The government also pointed out that the sharp acceleration of growth between April-June 2025 was supported by the services sector, which grew at an impressive 9.3 percent.
All major segments of the services sector—trade, hotels, transport, communication, broadcasting-related services, financial, real estate, professional services, and public administration, defence, and other services—have exhibited a year-on-year consistent increase.
The growth in GVA (Gross Value Added), which is also a better indicator of economic activity, at 7.6 percent during April-June 2025. GVA is arrived at by deducting net indirect taxes (indirect taxes minus subsidies) from GDP.
“In our view, Q1 numbers reflect the basic resilience of our economy. On the supply side, we have seen an all-round growth. On the manufacturing, construction, and service side activity, as well as the fact that the agriculture side has shown robust growth. The rabi harvest, as well as kharif sowing, have been much in excess of the last quarter," said Anuradha Thakur, Economic Affairs Secretary, Ministry of Finance
"We have a good buffer stock. We have had a good rainfall...On the demand side, the primary drivers have been domestic, and in our economy, net exports don't contribute so much on the demand side," she added.
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