India to be the third largest economy by 2027?

New Delhi, Nov 09: It is no secret has India has emerged as one of the top world economies in the past few years and continued to grow even as the world faced headwinds due to the Covid-19 pandemic and then the Russia-Ukraine war. Now, India is set to account for a fifth of global economic growth in the next decade.

 

 

 

Add more than $400 billion to GDP every year, a scale that is only surpassed by the US and China, India's GDP is set to double from the current $3.4 trillion to $8.5 trillion over the next decade, a forecast by global investment bank Morgan Stanley said.

 

 

 

In addition, India is also set to become the world's third-largest economy by 2027 as well as the world's third-largest stock market by 2030 as the required conditions are in place. The Morgan Stanley report also forecasted that India’s market capitalization will rise over three times to $11 trillion from $3.4 trillion by 2032 — the third biggest. The expanding size and scale of the country's economy will be the prime drivers of this surge, the report titled 'Why This Is India's Decade' said. Demographics, digitalization, decarbonization, and deglobalization are the four key factors that are likely to facilitate India's rapid rise. The report highlights the trends and policies driving the future of the Indian economy, saying the country’s rising heft represents a "once-in-a-generation shift and an opportunity for investors and companies."

 

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Household income in the country will also go up as the number of them making over $35,000 (over Rs 28 lakh) a year is set to rise fivefold in the coming decade. This is likely to lead to a discretionary consumption boom, besides an 11 percent annual compounding of market capitalization to $10 trillion during the decade.