Recap 2024: India’s Global Economic Rankings in 2024

India continues to establish itself as one of the leading global economies in 2024, with impressive performance across various economic sectors. Despite facing challenges such as inflation and global uncertainties, the country has shown remarkable resilience, driven by strong GDP growth, increasing foreign direct investment (FDI), and significant developments in infrastructure and military power. As a result, India’s position on the global economic stage has been solidified, and the nation is steadily advancing towards becoming a global superpower by the next decade.

India’s Economic Growth and Position in 2024

India is currently the fifth-largest economy in the world, with a GDP of $3.89 trillion at current prices, reflecting an impressive 8.2% growth rate in FY 23/24. This marks a significant achievement, positioning India as a major global economic player. Moreover, India ranks as the third-largest economy globally in terms of GDP based on purchasing power parity (PPP), with a GDP of $16.02 trillion, trailing only behind China and the United States. This metric reflects the country’s immense internal economic capacity, which continues to grow at a rapid pace.

Projected Growth and Future Outlook

The World Bank projects that India’s GDP growth will remain robust in the coming years, with an anticipated 7% growth rate for FY 2024-25. With growth forecasted to remain strong through FY 2026-27, India is on track to surpass its global economic rivals. It is expected to become the third-largest economy in terms of real GDP by 2030, further cementing its role as a global superpower.

India’s Rankings Across Key Global Economic Indexes in 2024

India’s performance on global economic-related indexes provides a deeper insight into its standing across various pillars of economic development. These rankings highlight both strengths and areas for improvement, providing a holistic view of the nation’s economic health.

Key Highlights of India’s Global Economic Performance

1. Economic Size: India’s rank as the fifth-largest economy by nominal GDP reflects its growing significance in the global economic landscape. This growth is driven by robust industrial output, services sector performance, and substantial domestic consumption.
2. Military Power: India’s military ranking of 4th highlights its rising influence as a global military power. With a military spending of $74 billion, India continues to focus on strengthening its defense capabilities, ensuring both national security and strategic influence.
3. Gold Reserves: Holding 840.76 tonnes of gold, India ranks 8th globally in terms of gold reserves, solidifying its position as a key player in the global precious metals market.
4. Wealth Growth: India has witnessed a surge in wealth creation, with an impressive 22% growth in its millionaire population, ranking it 11th globally. The country is also home to a growing number of billionaires, with Mumbai recently surpassing Beijing as the ‘Billionaire Capital’ of the world.
5. Competitiveness and Innovation: India’s ranking of 39th on the Global Competitiveness Index and Global Innovation Index suggests room for improvement in terms of business environment, infrastructure, and research and development. However, the country remains a major hub for innovation and startup growth, with significant advancements in sectors like technology, agriculture, and healthcare.
6. Stock Market Strength: With a market capitalization of $5.05 trillion, India ranks 5th globally in terms of stock market size, demonstrating the robustness of its financial markets and their growing role in global trade and investment.

India’s Emerging Global Superpower Status

India’s rising status as a global superpower is further evidenced by its growing influence in various international forums and its strategic investments in infrastructure and military development. The nation’s projected real GDP growth of 6.3% annually over the next decade, as per Ray Dalio’s Great Powers Index, is expected to help transform India into a global economic and political force.

Growth of Indian Cities and Wealth Creation

The development of cities in India has been nothing short of remarkable. According to Savills Research, Bengaluru has emerged as the fastest-developing city in the world, followed by Delhi, Hyderabad, and Mumbai, which are also ranked among the top five. This growth is driving both urbanization and wealth creation across the country.

India’s billionaire population continues to rise, with the total wealth of Indian billionaires reaching approximately $1 trillion, accounting for 7% of the world’s total wealth. The Hurun Report for 2024 also highlights the 94 new billionaires in India, making it the third-largest country globally in terms of billionaire count, behind the US and China.

Employment Landscape and Labour Productivity

India’s employment landscape has undergone a significant transformation, with seven crore job applications in 2024, marking a 25% year-on-year surge. However, challenges remain, particularly with labour productivity, where India ranks 133rd globally, and employment-to-population ratio, which stands at 52.8%. Despite the rise in job applications, India continues to face challenges in improving labour force participation and labour productivity, which remain key areas for focus in the coming years.