The Economist Intelligence Unit (EIU) forecasts India to be the fastest-growing major economy from 2024 to 2028, outpacing China. According to the EIU’s Global Outlook report, India’s rising economic influence will lead BRICS nations to surpass the G7 in nominal GDP by the mid-2040s. The EIU has revised its real GDP growth forecast for 2024 to 2.5% from 2.4%, that growth will remain steady despite high interest rates and geopolitical risks. Over the next five years, the global economy is projected to grow by 2.8%, with increased fragmentation and regionalization potentially hampering growth. Industrial policies, including sanctions and new incentives, are expected to drive firms towards less efficient supply chains, escalating trade tensions in strategic sectors and complicating global market competition.
The finance ministry’s April economic review highlighted that after exceeding market expectations in FY24, early indicators point to continued economic momentum in Q1 FY25. S&P Global Market Intelligence’s October 2023 report projects India will become the world’s third-largest economy, overtaking Germany and Japan by 2030, driven by its youthful demographic and rising urban household incomes. S&P Global Ratings has revised its outlook on India to positive from stable, citing robust economic expansion.
Additionally, rating agencies such as Fitch and Barclays have updated India’s GDP growth projection for FY24 to 7.8%, attributing it to strong domestic demand and sustained business and consumer confidence. In April, the International monetary fund-raised India’s GDP growth projection for FY25 by 30 basis points to 6.8%, reflecting buoyant domestic demand.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
