India is on track to overtake Japan and become the world’s third-largest economy by 2030, according to a report from S&P Global Market Intelligence. The report predicts that India’s nominal GDP, measured in USD terms, will double from $3.5 trillion in 2022 to $7.3 trillion in 2030. This rapid economic expansion is expected to push India ahead of Japan in terms of GDP size, making it the second-largest economy in the Asia-Pacific region.
Currently, Japan holds the third spot in the global economy, following the United States and China. India’s accelerated growth is attributed to increasing foreign direct investment over the past decade, driven by the country’s favorable long-term growth prospects, a youthful demographic profile, and rising urban household incomes.
India’s GDP had already surpassed that of the UK and France by 2022. The report also projects that by 2030, India’s GDP will surpass Germany’s. Japan, on the other hand, is expected to fall from the third to the fourth spot in terms of nominal GDP on a US dollar basis, overtaken by Germany.
India’s robust economic performance is highlighted, with private sector sales in the country growing at the second-fastest rate in over 13 years, supporting overall output expansion. While India and Russia exhibited strong growth, China’s expansion slowed, and Brazil slipped back into contraction during the survey period.
The report notes a global economic deceleration by the end of the third quarter, reaching its slowest pace in eight months. Furthermore, global new orders have contracted for the first time since January, with backlogs of work declining significantly, indicating potential weakness in the coming months.
