India to overtake Japan as Asia’s second largest economy by 2030, says IHS Markit

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admin January 10, 2022
Updated 2022/01/10 at 2:50 PM

According to IHS Markit, India is expected to replace Japan as Asia’s second-largest economy by 2030, when its GDP is expected to exceed that of Germany and the United Kingdom to become the world’s No. 3 by 2030.

India is now the world’s sixth-biggest economy, after the United States, China, Japan, Germany, and the United Kingdom.

IHS Markit predicted that India’s nominal GDP would expand from $2.7 trillion in 2021 to $8.4 trillion by 2030. “With this fast economic growth, Indian GDP would surpass Japanese GDP by 2030, making India the second-largest economy in the Asia-Pacific area.” By 2030, India’s GDP will be greater than that of Germany, France, and the United Kingdom, the three major Western European economies.

A number of significant growth factors boost the Indian economy’s long-term outlook.

“A significant positive element for India is its big and rapidly increasing middle class, which is helping to increase consumer spending,” according to IHS Markit, which predicts that the country’s consumption expenditure would double from $1.5 trillion in 2020 to $3 trillion in 2030.

According to IHS Markit, India’s real GDP growth rate for the whole fiscal year 2021–22 is expected to be 8.2%, recovering from a severe drop of 7.3% year-on-year in 2020–21.

The Indian economy is expected to grow at a strong pace of 6.7% in the fiscal year 2022–23.

Due to its rapidly rising consumer market and massive industrial sector, India has become an increasingly significant investment destination for multinationals in several areas, including manufacturing, infrastructure, and services.

 

Source: The Hindu

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