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.