India Set to Become World’s Third-Largest Economy by 2028

India’s economy is poised for significant growth, with projections indicating it will become the third-largest economy in the world by 2028. This prediction follows an optimistic report from Morgan Stanley, which forecasts India’s GDP doubling to USD 10.6 trillion by 2035.

Prime Minister Narendra Modi emphasized the importance of safeguarding economic interests, particularly for farmers, small industries, and job creation. He stated that India is on a path to achieving its ambitious economic goals, reinforcing the need for strategic measures to protect its burgeoning economy.

Current economic indicators reflect a positive trajectory. Inflation remains low, recorded at 2.1 percent in June 2025, marking a significant decrease. This stability has been complemented by robust export performance, which reached USD 210 billion in the first quarter of FY 2025-26. Notably, sectors such as electronics and agriculture have played key roles in this growth.

Key Economic Indicators and Government Support

The Reserve Bank of India has contributed to this economic momentum by lowering interest rates earlier in 2025, facilitating easier access to loans and investments without exacerbating inflation. Such measures have encouraged consumer spending and further stimulated economic activity.

Government initiatives aimed at enhancing infrastructure have also enabled small and medium enterprises to expand their export capabilities. The Goods and Services Tax (GST) collections reflect this growth, showing a year-on-year increase of 7.5 percent. With rising rural incomes and consumption, the economic landscape is becoming increasingly vibrant.

India’s GDP growth rate of 6.5 percent for FY 2024-25 is indicative of its status as the fastest-growing major economy. Analysts predict similar growth for FY 2025-26, driven by a young population, strong domestic demand, and ongoing reforms aimed at boosting economic productivity.

Future Projections and Regional Economic Contributions

Looking ahead, India’s GDP is anticipated to reach USD 7.3 trillion by 2030. Several Indian states, including Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka, are expected to emerge as economic powerhouses, with some projected to approach USD 1 trillion in GDP by 2035.

In summary, India’s economy is currently experiencing robust growth characterized by low inflation, strong exports, and substantial government support for businesses. If these trends continue, India is on track to solidify its position as the world’s third-largest economy, with key states leading the charge.