India to Surpass Japan to Become 2nd Largest Economy in Asia by 2030: S&P Global

India is set to overtake Japan to become the world’s third-largest economy with a GDP of $7.3 trillion by the end of the decade, S&P Global Market Intelligence said in it’s latest PMI issue. The rating agency said that after two years of robust economic growth in 2021 and 2022, the Indian economy maintained strong growth during the 2023 calendar year.

S&P Global further stated that India’s gross domestic product (GDP) is estimated to increase 6.2-6.3 per cent in the current fiscal year, making it the fastest-growing major economy in the financial year ending March 2024. The near-term outlook for the rest of the fiscal year includes a continuation of rapid expansion helped by robust growth in domestic demand, reported PTI citing the agency.

The rating agency noted that the increase in foreign direct investment inflows into the country in the last ten years shows the favourable long-term growth outlook for the Indian economy, backed by a young demographic profile and rapidly surging urban household incomes.