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India to become 3rd largest economy by 2027, 2 years before forecast

According to SBI Research’s ‘Ecowrap’ research, India would likely surpass both Japan and Germany to become the third-largest economy in 2027 (2027-28) if it continues its present rate of growth.

By 2029, India was predicted by SBI Research to have the third largest economy in the world.

India rose seven positions from its 2014 position to third place in the current rankings.

It’s interesting to note that India’s incremental growth between 2022 and 2027 is anticipated to surpass Australia’s economy, which is currently valued at USD 1.8 trillion, according to the analysis.

“At this rate, India is likely to add USD 0.75 trillion in every two years, implying that India is all set to touch USD 20 trillion by 2047, at least on current numbers,” the report said, adding that India’s global share in GDP will cross 4 per cent by 2027.

The percentage of India’s GDP is currently 3.5%, up from 2.6% in 2014, and is predicted to reach 4% in 2027.

According to predictions from SBI Research, when India reaches the third position in the world economy in 2027, at least two Indian states—Maharashtra and Uttar Pradesh—will surpass the USD 500 billion mark in terms of their economies.

“The GDP size of major Indian states in 2027 will be more than the size of some of the Asian and European countries like Vietnam, Norway and so on,” it added.