India Likely To Surpass Japan To Become World’s 3rd Largest Economy By 2030: S&P

New Delhi: India is on track to catapult itself at the global economic ranks, likely to surpass Japan as the world's third-largest economy by 2030, according to the latest report from S&P Global Market Intelligence. The S&P report has said India's GDP is projected to double, reaching $7.3 trillion by the end of this decade, up from $3.5 trillion in 2022. 

"This rapid pace of economic expansion would result in the size of the Indian GDP exceeding Japanese GDP by 2030, making India the second largest economy in the Asia-Pacific region,” the report states," the S&P Global Market Intelligence report said.

The report attributes India's economic growth to a notable acceleration of foreign direct investment inflows over the past ten years, reflecting the nation's favorable long-term growth prospects. This growth is driven by factors such as a youthful demographic profile and the rapid increase in urban household incomes. By 2022, India had already surpassed the GDP of both the United Kingdom and France. By 2030, India's GDP is also forecast to surpass the GDP of Germany.

This projection as mapped by International Monetary Fund's forecasts suggest that Japan's nominal GDP is set to be surpassed by Germany this year, causing Japan to drop from the third to the fourth position in the global rankings based on the US dollar.

The report underscores the global economic environment's ongoing deceleration, with signs of weakness as new orders contract for the first time since January, and backlogs of work decrease significantly, pointing to potential difficulties in the coming months.