India ranks fifth globally with a GDP of $3.89 trillion, maintaining strong economic growth despite facing adverse global conditions. According to the World Bank’s India Development Update, India’s economic growth is expected to be 8.2% for the fiscal year 2023-24.
For the fiscal year 2024-25, India’s economy is predicted to grow by 7% to 7.2%. By 2030, India’s GDP is projected to reach $6 trillion, and by 2035, it is expected to become the third-largest economy in the world. Furthermore, India is anticipated to surpass Japan, currently the fourth-largest economy, by 2025. As Japan’s currency weakens, India’s growth is expected to gain momentum.
As of 2023, the United States remains the world’s largest economy, with a GDP of $29.017 trillion. China, Japan, and Germany are ranked above India in terms of GDP. China’s GDP is $18.273 trillion, while countries like the UK, France, Russia, and Canada follow India in GDP rankings. India surpassed the UK in 2022 to become the world’s fifth-largest economy.
India is also the world’s fourth-largest consumer market, with domestic consumption accounting for about 70% of its GDP. Besides private consumption, investments and exports also fuel India’s economy. In 2022, India ranked as the eighth-largest export economy. Key sectors contributing to India’s economic growth include public infrastructure investment and the real estate sector. The construction and services industries have been vital in sustaining the economy, with the construction sector alone growing by 9.9% in the fiscal year 2023.
