India to surpass Japan in 2030 to become 2nd largest economy of Asia, says S&P Global

India’s economy is on the rise! By 2030, its Gross Domestic Product (GDP) is predicted to reach a whopping $7.3 trillion, making it the second-largest economy in the Asia-Pacific region, just after China.

Overtaking Japan and More

• In 2030, India’s GDP is expected to surpass even Germany’s. To put this in perspective, as of the end of 2022, India’s GDP had already outgrown that of the United Kingdom and France.
• This impressive economic growth has propelled India to become the third-largest economy in Asia-Pacific and the fifth-largest in the world.

Rapid Economic Expansion

• India’s GDP, when measured in United States dollars (USD), is predicted to jump from $3.5 trillion in 2022 to $7.3 trillion by 2030.
• This rapid expansion will make India’s economy second only to China in the Asia-Pacific region. It’s also expected to continue as one of the fastest-growing economies globally over the next decade.

A Thriving Market for Multinationals

• This growth opens up exciting opportunities for companies worldwide. India is becoming an essential long-term market for various industries, including manufacturing (such as automobiles, electronics, and chemicals) and services (like banking, insurance, asset management, healthcare, and information technology).

Sustained Strong Growth

• In 2021 and 2022, India experienced rapid economic growth. In 2023, the strong growth trend continued, with the GDP expanding by 7.8% year-on-year from April to June.
• This growth remains impressive despite the high comparison base established by the GDP growth of 13.1% in the same quarter in 2022.

Positive Outlook for the Near Future

• The economic outlook for the near future is optimistic, with expectations of ongoing rapid growth in 2023 and 2024, driven by strong domestic demand.

Attracting Foreign Investments

• India’s economy has been attracting foreign investments for a decade, indicating a favorable long-term outlook. Factors such as a youthful population and increasing urban household incomes contribute to this positive trend.

Key Growth Drivers

• Several factors are driving India’s long-term economic prospects, including its expanding and thriving middle class. This growing middle class plays a crucial role in boosting consumer spending.

An Attractive Investment Destination

• India’s robust domestic consumer market and significant industrial sector make it an attractive investment destination for multinational companies across various sectors, including manufacturing, infrastructure, and services.

Digital Transformation and E-commerce

• India is experiencing a digital transformation that is expected to accelerate e-commerce growth.
• This shift is changing the retail consumer market and attracting global technology and e-commerce giants to India.

Internet Access Expansion

• By 2030, an estimated 1.1 billion Indians will have internet access, more than doubling from 2020.
• This expansion, along with the growth of e-commerce and the adoption of 4G and 5G smartphone technology, is benefiting Indian companies like Mensa Brands, Delhivery, and BigBasket.

Continued Foreign Investment Inflows

• Over the past five years, India has seen a substantial increase in foreign direct investments (FDI), which has continued even during the pandemic years (2020-2022).
• FDI inflows come from global tech giants, such as Google and Facebook, as well as manufacturing firms, all drawn to India’s vast and fast-growing consumer market.

Find More News on Economy Here