India to be world’s third-largest economy by 2028: Morgan Stanley

India will become the world’s third-largest economy by 2028, overtaking Germany, according to a report by global financial services firm Morgan Stanley. The report said, the Indian economy, valued at 3.5 trillion dollars in 2023, is projected to expand to 4.7 trillion dollars by 2026. In 2028, India will overtake Germany as its economy will expand to 5.7 trillion, Morgan Stanley said. The report said, India has emerged as the world’s most sought-after consumer market and has gained share in global output, facilitated by stable macroeconomic policies and improved infrastructure.
According to Morgan Stanley report, India’s global economic ranking has improved significantly, moving from the 12th largest economy in 1990 to the 13th in 2000, and then rising to 9th in 2020 and 5th in 2023. It said, the contribution of India to global GDP is expected to increase from 3.5 percent to 4.5 percent by 2029. Morgan Stanley said, India is likely to gain a share in global output in the coming decades driven by strong foundational factors, including robust population growth, a functioning democracy, macro stability influenced policy, better infrastructure, a rising entrepreneurial class and improving social outcomes.

According to Morgan Stanley, India was the 12th largest economy in the world in 1990, slipped to 13th position in 2000 before rising to 9th rank in 2020 and 5th in 2023. India's share in the world GDP is projected to rise from 3.5 per cent to 4.5 per cent in 2029.It projects three scenarios for India's growth - Bear - where the economy expands to USD 6.6 trillion by 2035 from USD 3.65 trillion in 2025, Base - where it grows to USD 8.8 trillion and Bull - where the size balloons to USD 10.3 trillion.

(Business Correspondent)