Prime Minister Narendra Modi’s recent statement defending India‘s economic trajectory has captured global attention, especially as he confidently declared that India is on its way to becoming the world’s third largest economy. This response came after US President Donald Trump criticized India’s ties with Russia, calling it a “dead economy” – a claim that Modi firmly countered with impressive economic data and projections.
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India’s Current Economic Standing & Projections
| Economic Indicator | Current Status | Projected Timeline |
|---|---|---|
| Current Global Rank | 4th largest economy (Nominal GDP) | Moving to 3rd by 2027-2030 |
| GDP Growth Rate | 6.2-6.4% (FY 2024-25) | 6.3-6.8% (FY 2025-26) |
| Projected GDP by 2030 | $7.3 trillion | Third largest globally |
| Population | 1.45 billion | Largest in the world |
| PPP Ranking | 3rd largest globally | Maintaining position |
The Road to Third Place: Timeline and Milestones
According to the IMF’s calculations, India will move into fourth place in 2025 and into the third place in 2027 as a US$ 5.4 trillion economy. India is predicted to become the third-largest economy by FY28, overtaking both Japan and Germany, with India’s GDP estimated to be US$5.2 trillion.
Key Milestones on the Journey:
- 2025: Solidifying 4th position globally
- 2027-2028: Surpassing Japan and Germany
- 2030: Becoming third-largest economy with projected annual growth of 6.7%
- 2047: Target to become a developed nation
What’s Driving India’s Economic Growth?
India, the world’s fourth-largest economy, has emerged as the fastest-growing major economy and is projected to be world’s fastest growing major economy (6.3% to 6.8% in 2025-26). This transformation stems from several key factors:
Growth Drivers:
- Robust domestic demand and consumption
- Dynamic demographic profile with young workforce
- Sustained economic reforms under Modi government
- Technology services and digital transformation
- Traditional and modern agriculture sectors
- Growing manufacturing capabilities
For comprehensive analysis of India’s economic policies and growth strategies, visit our economy section.
Challenges and Opportunities Ahead
While forecasts indicate a growth rate of 6.5 percent in 2025, attaining the higher rates necessary to compete with China’s economy poses a considerable challenge. To realize its ambition of becoming a developed nation by 2047, India must achieve sustained higher annual growth rates.
Key Challenges:
- Maintaining consistent 6.5-7% growth rates
- Infrastructure development needs
- Employment generation for growing population
- Global economic uncertainties and trade tensions
Modi’s Economic Vision: From Fourth to Third
This transformation is the result of a decade of decisive governance, visionary reforms, and global engagement under Prime Minister Narendra Modi. The government’s ambitious timeline aligns with India’s goal of becoming a developed nation by 2047, marking 100 years of independence.
During his address to the nation on 15th August, Prime Minister announced the vision for the next 24 years, with making India the world’s third largest economy as the guiding force for the government.
Stay updated with the latest economic developments and policy analysis in our business section.
Global Context and Competitive Landscape
India is currently the world’s fourth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). The path to third place involves surpassing established economies like Japan and Germany, requiring sustained high growth rates and strategic economic positioning.\
Follow the latest economic updates and government policies on Press Information Bureau and stay informed about India’s economic journey through our comprehensive coverage.
Frequently Asked Questions
Q: When is India expected to become the world’s third largest economy?
A: India is projected to become the third largest economy by 2027-2028, according to multiple forecasts including IMF projections. The timeline shows India moving to fourth place in 2025, then surpassing Japan and Germany to reach third place by FY28 with an estimated GDP of $5.2-5.4 trillion.
Q: What is India’s current economic growth rate and how does it compare globally?
A: India’s economy is growing at 6.2-6.4% in FY 2024-25, with projections of 6.3-6.8% for FY 2025-26. This makes India the fastest-growing major economy globally. India is currently the world’s fourth-largest economy by nominal GDP and third-largest by purchasing power parity (PPP).
