ADVERTISEMENT
ADVERTISEMENT
India poised to become 3rd-largest economy with GDP of $7.3 trillion by 2030
India’s real GDP grew 8.2 percent in Q2 FY2025-26, up from 7.8 percent in the previous quarter.
-
IANS - Tue, 30, Dec 2025
- 09:16 EST
- 19
Representative Image / Courtesy: IANS
With GDP valued at US$4.18 trillion, India has surpassed Japan to become the world’s fourth-largest economy and is poised to displace Germany from the third rank in the next 2.5 to 3 years with a projected GDP of US$7.3 trillion by 2030, an official statement said on Dec. 29.
The growth momentum further surprised on the upside, with GDP expanding to a six-quarter high in Q2 of 2025-26, reflecting India’s resilience amid persistent global trade uncertainties.
Domestic drivers—led by robust private consumption—played a central role in supporting this expansion, according to the statement.
ALSO READ: India has boarded the Reform Express: PM Modi
India’s real GDP grew 8.2 percent in Q2 FY2025-26, up from 7.8 percent in the previous quarter and 7.4 percent in Q4 of 2024-25, led by resilient domestic demand amidst global trade and policy uncertainties. Real gross value added (GVA) expanded by 8.1 percent, catalyzed by buoyant industrial and services sectors.
High-frequency indicators point to sustained economic activity: inflation remains below the lower tolerance threshold, unemployment is on a declining trajectory, and export performance continues to improve. Furthermore, financial conditions have stayed benign, with strong credit flows to the commercial sector, while demand conditions remain firm, supported by a further strengthening of urban consumption.
“India is among the world’s fastest-growing major economies and is well-positioned to sustain this momentum. With the ambition of attaining high middle-income status by 2047—the centenary year of its independence—the country is building on strong foundations of economic growth, structural reforms, and social progress,” according to the statement.
The RBI revised India’s GDP growth forecast for FY 2025-26 upwards to 7.3 percent from the earlier estimate of 6.8 percent.
India’s domestic growth is on an upward trajectory owing to multiple factors such as robust domestic demand, income tax and goods and services tax (GST) rationalization, softer crude oil prices, front-loading of government capital expenditure (CAPEX), and facilitative monetary and financial conditions, supported by benign inflation.
Looking ahead, domestic drivers like favorable agricultural prospects, the sustained effects of GST rationalization, benign inflation, and the strong balance sheets of corporates and financial institutions—coupled with supportive monetary and financial conditions—are expected to continue bolstering the economic activity.
External factors such as services exports are projected to remain robust, while the swift conclusion of current trade and investment negotiations offers additional upside potential. Ongoing reforms are likely to further enable growth prospects. The present macroeconomic situation presents a rare “Goldilocks period” of high growth and low inflation, said the statement.
Related
ADVERTISEMENT
ADVERTISEMENT
E Paper
Video
Comments
Start the conversation
Become a member of New India Abroad to start commenting.
Sign Up Now
Already have an account? Login