India is rapidly emerging as a global economic powerhouse, with Commerce and Industry Minister Piyush Goyal announcing that the country is on track to become the world’s third-largest economy by 2027–28.
Speaking at an Indian community event in Auckland, New Zealand, Goyal highlighted that India’s GDP is expected to reach $32 trillion by 2047, compared to about $4 trillion today, marking an eightfold increase within two decades.
“From being part of the ‘fragile five’ economies a decade ago, India has transformed into one of the world’s top five economies,” Goyal stated. “We are now a trusted global partner and the fastest-growing major economy.”
Sustained Growth Backed by Strong Fundamentals
India’s impressive rise is underpinned by robust domestic demand, structural reforms, and a vibrant manufacturing and services sector. Economic experts believe this growth trajectory is sustainable as India continues to attract foreign investments and strengthen its export capacity.
A recent DBS Bank report supports these projections, noting that India’s economy is expected to expand at an average annual rate of 6.7% between 2025 and 2040 — significantly higher than China’s projected 3% growth for the same period.
Long-Term Economic Outlook
According to DBS Bank, India’s nominal GDP could exceed $11.5 trillion by 2040, while per capita income is expected to rise to around $7,000, moving the country firmly into the upper middle-income category.
The report also highlights India’s demographic advantage, digital infrastructure, and policy stability as critical factors that will continue to fuel economic expansion over the coming decades.
Transforming India’s Global Economic Role
India’s progress over the past decade has been marked by significant reforms in taxation (GST), ease of doing business, and digital financial inclusion through initiatives like UPI and Aadhaar.
As global supply chains diversify and industries seek alternatives to China, India is positioning itself as a preferred manufacturing and innovation hub. The government’s ongoing focus on infrastructure development, clean energy, and technology-driven industries further supports this growth vision.
“The world today looks at India as a reliable partner and an engine of growth,” Goyal added, emphasizing the nation’s role in shaping a more balanced and inclusive global economy.
Looking Ahead
If current trends continue, India will surpass Japan and Germany to become the third-largest economy globally by 2028, reinforcing its influence in global trade, investment, and policymaking.
With its youthful population, digital transformation, and policy-driven resilience, India is well-positioned to lead the next phase of global economic growth.