New Delhi, Sep 21 (IANS): Driven by strong GDP growth and robust manufacturing and emphasis on building infrastructure, India is on its way to becoming the third largest economy soon and has the potential to add $1 trillion to its GDP every 1.5 years to reach the $10 trillion economy mark by 2032, a new report showed on Saturday.
The country is expected to become a $4 trillion economy in 2024–2025, which would make it the world's fourth-largest economy.
According to a report by IDBI Capital, the country is on track to become a $10 trillion economy by 2032, positioning itself as the world’s third-largest economy by 2030.
"By adding USD 1tn every 1.5 years going forward, India is forecasted to emerge as the third-largest global economy over the next six years," the report noted.
Ten years ago, India was the 10th largest economy in the world, with a GDP of $1.9 trillion at current market prices.
Key initiatives such as "Make in India" are expected to play a pivotal role in bolstering the nation's manufacturing capabilities and positioning India as a global manufacturing hub.
On Thursday, a report by S&P Global projected that India is on track to become the third-largest economy by fiscal 2030-31, driven by a robust projected annual growth rate of 6.7 per cent. The country has emerged as the fastest-growing large economy at an 8.2 per cent growth rate in FY24, significantly exceeding the government’s earlier estimate of 7.3 per cent.
As per a recent NITI Aayog document, for India to become a developed nation, it needs to strive to be a $30 trillion economy by 2047 with a per capita income of $18,000 per annum. By then, the GDP would have to grow 9 times from today’s $3.36 trillion and the per capita income would need to rise 8 times from today’s $2,392 per annum, according to the document.
The 21st century can be India’s century, as the country pole-vaults into the future confident of its capabilities. India is the fifth largest economy in the world today. Prime Minister Narendra Modi said this week that India is becoming a major stakeholder in the global supply chain and this growing capacity is the foundation of its economic growth.