India Projected to be the World’s Third Largest Economy by 2030
ASIA — Early this year, India gained a noteworthy economic foothold as it surpassed the United Kingdom (UK) as the world’s fifth largest economy for the second time. However, despite earning a momentous economic status, India has been relatively laid-back and away from the world’s economic and geopolitical limelight. A sharp contrast from its counterparts, the US and China — currently the two largest economies in the world.
However, in light with the recent notable financial figures, the country’s economic outlook can no longer be understated. On Saturday, India’s renowned former Chief Economic Advisor, Dr. Arvind Virmani, projected that the second-most populous country in the world will also achieve its most consequential goal yet — becoming the world’s third largest economy by 2030, just behind the US and China.
World’s Fastest Growing Economy
One of the major economic factors that could help propel the country to achieve this future landmark is its current eye-watering economic performance. Impressively, India’s Gross Domestic Product (GDP) expanded by two-digit figures — a whopping 13.5% in the year’s second quarter alone. This is a sharp contrast to the overall economic slowdown major economies in the world are experiencing, many of whom are facing a “full-fledged recession.” Thus, India is officially the world’s fastest-growing economy thus far.
Therefore, many economists and experts are optimistic about India’s prospect. Among these is Virmani himself. In an interview with an Indian News Agency, ANI, Virmani offered his consensus saying, “Last year we were sixth… It was expected (that we would become the fifth) in 2022.” He exclaimed that the country is moving up the world economic power scale rather quickly and that ‘… India will become the third largest economy in the world by 2028–30.”
“It’s the trend, which is important, which will affect perceptions. It will affect our foreign policy and how we deal with various countries, and it will [also] affect the perception of India. It will affect the perception of different people or where India is. Over the last 20–30 years, people have begun to see that we are far behind China. So, this will hopefully start changing the perception,” Virmani added.
What This Means For the Country as a Whole
According to the International Monetary Fund (IMF), India currently ranks behind the US, China, Japan, and Germany in terms of the total size of its economy in ‘nominal’ cash terms with about $854 billion. This is a far cry from a decade ago when the UK was fifth while India was trailblazing in 11th place.
India’s current economic foothold of being the world’s fifth largest economy, as well as its grand prospect of being the third largest economy within the decade, could dramatically change its geo-political position in the world. In fact, as previously mentioned, this is the second time India has overtaken the UK in total size of its economy. Prof. Sachin Chaturvedi, the Director General at the Research and Information System for Developing Countries (RIS), a New Delhi Think-Tank, explored the economic repercussion these factors have on the country.
“… [India being the fifth-largest economy] has not happened for the first time. It’s the second time, actually. The earlier was in 2019. We [the Indian Government and Central Bank, the Reserve Bank of India] are focusing on capital expenditure. We are making efforts to bring down the revenue expenditures, and RBIs strategy of inflation targeting has also helped economy grow in a very balanced manner, and that has given the results as well.”
“This is a proud moment for India. We are doing extremely well as growth and economy are concerned.” He remarked, “While the World is on the brink of recession, the Indian economy is booming. We are doing really well, and that is showing up in the economic performance.” He added.
