According to S&P Global Market Intelligence's most recent issue of PMI, India, the fifth-largest economy in the world, is anticipated to pass Japan and become the third-largest economy in the world by 2030 with a GDP of $7.3 trillion.
The Indian economy showed two consecutive years of strong, sustained growth in 2021 and 2022, and it has continued to do so in 2023.
The fastest-growing global economy in this fiscal year is likely to be India, whose gross domestic product (GDP) is predicted to increase by 6.2–6.3% in the fiscal year that ends in March 2024. The third-largest economy in Asia experienced a stunning 7.8% growth in the April-June quarter.
"The near-term economic outlook calls for a continuation of the current rapid expansion throughout 2023 and into 2024, supported by strong growth in domestic demand," said S&P Global.
The recent acceleration of FDI into India is a reflection of the country's favorable long-term growth prospects, which are supported by a youthful population profile and fast-expanding urban household incomes.
The nominal GDP of India, expressed in dollars, is anticipated to increase from $3.5 trillion in 2022 to $7.3 trillion in 2030. By 2030, India's GDP would surpass that of Japan thanks to its swift economic growth, making it the second-largest economy in the Asia-Pacific region, according to the report. By 2022, the Indian GDP was already larger than the GDPs of France and the UK combined. India's GDP is anticipated to exceed Germany by 2030.
The long-term forecast for the Indian economy, according to S&P Global, is strengthened by a number of important growth factors.
"India's sizable and quickly expanding middle class, which is assisting in boosting consumer expenditure, is a significant positive aspect. According to the statement, "India is becoming an increasingly important investment destination for a wide range of multinationals in many industries, including manufacturing, infrastructure, and services. This is due to the fast expanding domestic consumer market in India as well as its sizable industrial sector.
The landscape of the retail consumer industry is anticipated to change over the next ten years as a result of India's ongoing digital revolution. Leading international multinationals in technology and e-commerce are being drawn to the Indian market as a result, according to S&P Global.
Additionally encouraging is the rise in inflows of foreign direct investment into India during the previous five years.
"India's strong FDI inflows have been boosted by large inflows of investments from global technology MNCs such as Google and Facebook that are attracted to India's large, fast-growing domestic consumer market, as well as a strong upturn in foreign direct investment inflows from manufacturing firms," the report said.
-Over the next ten years, India's economy is anticipated to continue to develop at one of the quickest rates in the world. India will become one of the most significant long-term growth markets for multinationals in a variety of industries, from manufacturing sectors like automobiles, electronics, and chemicals to services sectors like banking, insurance, asset management, healthcare, and information technology.
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