India is poised to surpass Japan and Germany in 2027, becoming the third-largest economy globally, according to the State Bank of India’s Ecowrap report. This projection comes after India’s recent strides in economic growth and policy reforms, including initiatives like Make in India, PM Gati Shakti infrastructure drive, and targeted social welfare schemes. The country’s recovery from the COVID-19 phase has been strong, further fueling its growth trajectory.
Geopolitical and geo-economic shifts have strengthened India’s prospects, attracting multinational companies looking to expand their operations in the Indian market. Japan, in particular, has shown significant interest in India, with over 72% of Japanese companies eager to expand their businesses in the country. India’s young population and abundant labor pool offer additional advantages for its growing economy.
Economic indicators suggest India’s GDP is expected to grow by around 8% in the first quarter of the current financial year, after achieving a 6.1% growth in the last quarter of 2022-2023. The country’s demographic advantage and potential for leading Industry 4.0 are seen as promising opportunities for further growth in global manufacturing.
Despite these positive developments, proactive efforts are still necessary to solidify India’s position as the third-largest economy in the world. Building on the country’s improving positioning and strong fundamentals will be crucial in sustaining its growth trajectory.
