india-to-be-world-s-third-largest-economy-by-2028

India is on track to become the world's third-largest economy by 2028, with its gross domestic product (GDP) expected to reach $5.7 trillion, according to a report by Morgan Stanley.

 

The country’s rapid economic expansion is being driven by strong macroeconomic stability, infrastructure development, and policy reforms that are enhancing its global position.

 

Currently ranked fifth in the world, India is projected to surpass Germany by 2028, making it the fourth-largest economy by 2026 with a GDP of $4.7 trillion. The report highlights India’s growing share in global output, which is expected to increase from 3.5 pc to 4.5 pc by 2029.

 

This economic momentum is expected to position India as a key player in the global market, attracting investors and strengthening its consumer base.

 

Morgan Stanley's projections outline three possible scenarios for India’s growth over the next decade. In a conservative estimate, India's economy could expand to $6.6 trillion by 2035, while a more optimistic outlook suggests a GDP of $10.3 trillion.

 

The report also forecasts an increase in GDP per capita, which is expected to nearly double from $2,514 in 2025 to $5,683 by 2035 under the base scenario.

 

India’s economic growth is being fueled by multiple factors, including a strong entrepreneurial ecosystem, a growing working population, and continued infrastructure investments.

 

The rise of the digital economy, expanding manufacturing capabilities, and improvements in financial inclusion are further contributing to this upward trajectory.

 

The country’s inflation rates are also stabilizing, with consumer price index (CPI) inflation expected to decline from 4.9 pc in 2025 to 4.3 pc by 2027. This is expected to provide flexibility for policymakers to support economic growth through fiscal and monetary measures.

 

The Reserve Bank of India (RBI) has already embarked on a rate-cutting cycle, with further reductions expected in the coming months to stimulate demand.

 

Government policies aimed at boosting consumption, increasing capital expenditure, and maintaining fiscal discipline are playing a crucial role in sustaining economic growth.

 

The Budget's focus on infrastructure and manufacturing is expected to drive long-term investments and job creation, further strengthening India’s position as a global economic powerhouse.