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India to surpass Japan as Asia’s 2nd largest economy by 2030: Report

  • IASbaba
  • January 17, 2022
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India to surpass Japan as Asia’s 2nd largest economy by 2030: Report

Part of: Prelims and GS III – Economy

Context IHS Markit said in a report that India is likely to overtake Japan as Asia’s second-largest economy by 2030.

Key takeaways from the report

  • Currently, India is the sixth-largest economy, behind the U.S., China, Japan, Germany and the U.K.
  • India’s nominal GDP is forecast to rise from $2.7 trillion in 2021 to $8.4 trillion by 2030
  • By 2030, the Indian economy would also be larger in size than the largest Western European economies of Germany, France and the U.K.
  • The long-term outlook for the Indian economy is supported by a number of key growth drivers.
  • An important positive factor for India is its large and fast-growing middle class, which is helping to drive consumer spending.
  • The country’s consumption expenditure will double from $1.5 trillion in 2020 to $3 trillion by 2030.
  • The Indian economy is forecast to continue growing strongly in the 2022-23 fiscal year, at a pace of 6.7%.
  • Its large industrial sector have made India an increasingly important investment destination for multinationals in many sectors, including manufacturing, infrastructure and services.

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