The SBI Ecowrap, a report by the State Bank of India’s Economic Research Department, predicts that India is on track to become the world’s third-largest economy by FY28. This projection is based on the actual GDP data as of March 2023, showcasing a significant climb of seven places since 2014 when India was ranked tenth.
All About the Report of India becoming the Third largest economy
Surpassing both Japan and Germany, India is expected to achieve this milestone in 2027, earlier than previously forecasted for 2029. The report highlights that India’s growth rate indicates an impressive trend, with an incremental increase equivalent to the current size of Australia’s economy at $1.8 trillion between 2022-2027.
At the current pace, India is projected to add $0.75 trillion every two years, leading to an estimated GDP of $20 trillion by 2047. By 2027, India’s global share in GDP is anticipated to cross 4 percent. The report also indicates that India’s GDP in Q1FY24 is likely to surpass 8 percent, contributing to a GDP growth rate exceeding 6.5 percent in FY24.
The economists believe that achieving a growth rate of 6.5-7 percent is the new normal for the country, terming it a “sustained goldilocks” period for the economy. Becoming the world’s third-largest economy would be a remarkable achievement for India according to the economists at the State Bank of India.
Moreover, according to the report, at least two Indian states, Maharashtra and Uttar Pradesh, are anticipated to surpass the $500 billion milestone by FY28, coinciding with India’s ascent to the third position in the global economy. Prime Minister Narendra Modi has conveyed his assurance that India will be among the top three economies worldwide if he is elected to serve a third term in office.
During his tenure, India’s economy has climbed from the tenth position to the fifth in the world, and he envisions India’s economy is among the top three during his third term, with the next general elections due in 2024.
