India, set to be the world’s third-largest economy by 2027

The country’s GDP could more than double from USD3.5 trillion today and go beyond USD7.5 trillion by 2031

GDP may go up by 5.9 percent next calendar year, down from this year’s projection of 6.9 percent. Kunal Mehta/Shutterstock

S&P Global Ratings has recently revised India’s economic growth forecast for the current fiscal year, lowering it to seven percent, reported Mint. However, the firm added that since the economy is primarily led by domestic demand, the global slowdown will not have a significant impact on it.

Moreover, Goldman Sachs Group Inc. sees expansion slowing down in the first half of next year as the reopening boost fades, but will is likely to re-accelerate in the second half as global growth recovers.

GDP may go up by 5.9 percent next calendar year, down from this year’s projection of 6.9 percent.

The IMF reduced its prediction for India’s growth from 7.4 percent to 6.8 percent; the World Bank to 6.5 percent; and the Asian Development Bank from 7.5 percent to seven percent. 

Meanwhile, the Reserve Bank of India expects that the economy would grow at a rate of seven percent this fiscal year.

However, India is set to become the world’s third-largest economy by 2027, according to Ridham Desai, Morgan Stanley’s Chief Equity Strategist for India. It is projected to outpace Japan and Germany.

More: India’s economy surpasses the United Kingdom’s, ranking 5th

India is also expected to have the third-largest stock market by 2030, which can be attributed to global trends and key investments in energy and technology.

Moreover, the country’s GDP could more than double from USD3.5 trillion today and go beyond USD7.5 trillion by 2031. 

Experts are also looking into the potential impact of this economic development, which includes a growth in credit availability, improved quality of life, and a boom in consumer spending.

Chetan Ahya, chief economist at Morgan Stanley, said that from 2023 onwards, “India will be one of only three economies in the world that can generate more than USD400 billion annual economic output growth.” After 2028, the number could even exceed USD500 billion.

Ahya stated that as the country’s economy transforms, the next decade will be similar to the path taken by China from 2007 through 2012.

The Property Report editors wrote this article. For more information, email: [email protected].

Recommended

Sign up

Subscribe to the latest Asia Property Awards news