A recent report predicts that India, already excelling economically and securing a prominent position as the world's fifth-largest economy, is poised to climb even higher and claim the spot of the world's third-largest economy by 2030.
"The near-term economic outlook is for continued rapid expansion through the remainder of 2023 and into 2024, underpinned by strong domestic demand growth," S&P Global Market Intelligence reported.
According to the statement, the surge in foreign direct investment (FDI) witnessed in India over the last ten years showcases the promising trajectory of the country's economy for future growth.
"India's nominal GDP in USD terms is forecast to grow from USD 3.5 trillion in 2022 to USD 7.3 trillion in 2030. This rapid pace of economic expansion would result in the size of India's GDP surpassing that of Japan by 2030, making India the second-largest economy in the Asia-Pacific region," it read.
Currently, the US is the world’s largest economy with a GDP of USD 25.5 trillion. It is followed by China as the second-largest economy with a GDP of about USD 18 trillion. Japan is third with USD 4.2 trillion GDP, and Germany with USD 4 trillion GDP placed at fourth position.
The S&P Global findings said the Indian economy is supported by a number of key growth drivers.
"An important positive for India is its large and fast-growing middle class, which is helping to drive consumer spending. India's fast-growing domestic consumer market and its large industrial sector have made India an increasingly important investment destination for a wide range of multinationals in many sectors, including manufacturing, infrastructure and services," it read.
According to the report, the digital advancements in India are anticipated to further propel the expansion of e-commerce. It also highlights the fact that top companies are being enticed to venture into the Indian market.
"By 2030, 1.1 billion Indians will have internet access, more than doubling from the estimated 500 million internet users in 2020," it said.