India to overtake Japan as Asia's second-largest economy by 2030: S&P Global report

India Economy 2030: S&P Global Market Intelligence predicts that India, currently the world's fifth-largest economy, is poised to surpass Japan and become the world's third-largest economy and Asia's second-largest economy with a GDP of USD 7.3 trillion by 2030.

After experiencing robust economic growth in 2021 and 2022, India's economy continues to demonstrate strong performance in 2023.

India GDP 2024

It is projected that India's GDP will grow by 6.2-6.3% in the fiscal year ending in March 2024, making it the fastest-growing major economy this fiscal year. A substantial acceleration in foreign direct investment over the past decade reflects India's promising long-term growth prospects, driven by a youthful demographic and rising urban incomes.

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India GDP 2030: Robust Economic Growth

S&P Global anticipates that India's nominal GDP, measured in USD terms, will climb from USD 3.5 trillion in 2022 to USD 7.3 trillion by 2030. This rapid expansion is expected to propel India's economy ahead of Japan, making it the second-largest economy in the Asia-Pacific region.

By 2022, India's GDP had already exceeded that of the UK and France, and by 2030, it is forecasted to surpass Germany. Currently, the US holds the title of the world's largest economy with a GDP of USD 25.5 trillion, followed by China at approximately USD 18 trillion. Japan ranks third with a GDP of USD 4.2 trillion, followed by Germany at USD 4 trillion.

India Economy: Key Drivers of India's Growth

Key drivers of India's long-term economic outlook include a burgeoning and fast-growing middle class that is driving consumer spending. India's expanding domestic consumer market and significant industrial sector have made it an increasingly attractive destination for global multinationals across various sectors.

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The ongoing digital transformation of India is expected to accelerate e-commerce growth, attracting global technology and e-commerce giants. By 2030, it is projected that over 1.1 billion Indians will have internet access, further driving the growth of e-commerce and related businesses.

The country's strong momentum in foreign direct investment (FDI) inflows is attributed to its large and rapidly expanding domestic consumer market, along with a surge in FDI from manufacturing firms.

Overall, India is set to maintain its position as one of the world's fastest-growing economies, making it a pivotal long-term growth market across a range of industries.