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Key Highlights
- India is currently the 5th largest economy in the world in GDP (Gross Domestic Product) terms.
- GDP is an important economic indicator. It represents the total value of goods and services produced in a country.
- India is likely to be the 3rd largest economy in the coming years, surpassing its current standing as the 5th largest economy in the world.
When people discuss the economy, a term that often comes across is GDP. It is defined as the total value of goods and services produced in a country during a specific period. GDP is an important indicator of economic output and growth.
India is currently the 5th largest economy in the world in terms of GDP (Gross Domestic Product). In this blog, we will reflect on the growth trajectory of the Indian economy and how you can be a part of its growth story.
Let’s begin!
The Indian Economy in Trillion Dollars
The Indian economy witnessed substantial growth and development in the past decade. Despite challenges, this decade turned out to be transformative for the country.
In 2022-23, the Indian economy in trillion dollars was 3.7 in terms of total GDP value. The GDP per capita (the country’s GDP divided by its population) stood at $2,612, 11.67% higher than the previous year.
The Ranking of Indian Economy in Trillion Dollars
Today, India is the 5th largest economy in the world and here's how it is placed among its international peers:
|
Rank |
Country |
GDP |
|
1 |
United States |
$29.17 trillion |
|
2 |
China |
$18.27 trillion |
|
3 |
Germany |
$4.71 trillion |
|
4 |
Japan |
$4.07 trillion |
|
5 |
India |
$3.89 trillion |
|
6 |
United Kingdom |
$3.59 trillion |
|
7 |
France |
$3.17 trillion |
|
8 |
Italy |
$2.38 trillion |
|
9 |
Canada |
$2.21 trillion |
|
10 |
Brazil |
$2.19 trillion |
Source: International Monetary Fund
As tabulated above, the United States of America occupies the top spot. China and Germany take the following two ranks. Japan emerges as the 4th largest and India as the 5th largest economy in the world. United Kingdom, France, Italy, Canada, and Brazil are the next five largest economies, in the said order.
India's Growth Potential
India's economy is diverse and growing quickly, largely due to booming sectors like manufacturing, services, agriculture, and information technology.
The IMF (International Monetary Fund) estimated the country’s GDP growth at 6.8% in its World Economic Outlook Apr 2024 issue. Subsequently, it revised the projection upward to 7% in its World Economic Outlook Jul 2024 issue. This revision is due to private consumption growth and a further anticipated rise driven by a recovery in rural consumption.
Roadmap Projection of the Indian Economy in Trillion Dollars
India’s economic growth is due to several factors, including reforms like unifying taxes and simplifying business operations through GST (Goods and Services Tax). The country reported a jump of 79 ranks in five years and ranked 63rd on the World Bank’s Doing Business Report, 2020.
India is likely to leap from being the 5th largest economy in the world to the 3rd largest, expected to emerge stronger and take over Japan and Germany in the coming years. It is also anticipated that the Indian economy in trillion dollars will stand at 30 by 2047.
Become a Vital Part of India's Growth Story
India is likely to progress from being the 5th largest economy in the world to the 3rd largest. Just like many others, if you believe in India’s growth trajectory, you might want to explore business opportunities or investment avenues in the country. To give shape to such prospects, you can explore a business loan and/or mutual funds , respectively.
From meeting your daily business requirements to acquiring real estate, a business loan can help you expand your footprint and take your business to the next level. On the other hand, investing in the right mutual funds gives you exposure to the rapidly growing Indian economy.
Make the right decision today with Aditya Birla Capital and contribute to India's growth!
FAQS - FREQUENTLY ASKED QUESTIONS
What do you mean by GDP? How is India ranked in GDP terms?
GDP stands for Gross Domestic Product and represents the total value of goods and services produced in the country. Currently, India is the 5th largest economy in the world in GDP terms.
Does India have the potential to surpass its current standing as the 5th largest economy in the world?
Yes. India is likely to surpass its standing as the 5th largest economy in the world to be the 3rd largest in the coming years.
Which countries is India said to overtake to be the 3rd largest economy?
India is likely to overtake Japan and Germany to be the 3rd largest economy.
What is India’s estimated GDP growth?
IMF projects India’s GDP to grow at a rate of 7%.
What is the GDP of India’s economy in trillion dollars?
The size of the Indian economy in trillion dollars is 3.89, making it the 5th largest economy in the world.
Why is it said that the India economy in trillion dollars is poised for growth?
The Indian economy in trillion dollars is poised for growth largely due to the anticipated growth of private consumption and other favourable factors.
When can India be a $30 trillion economy?
It is believed that India will be a $30 trillion economy by 2047.
How can I be a part of the growth of the Indian economy in trillion dollars?
If you too believe in the India story, you can be a part of the growth in the Indian economy in trillion dollars by exploring business opportunities and/or investment avenues.
How is India ranked on the World Bank’s Doing Business Report?
The World Bank’s Doing Business Report, 2020 ranks India at the 63rd place.
Is there an improvement in the ease of doing business in India?
Going by the ranking in the World Bank’s Doing Business Report, India has reported a jump of 79 ranks in five years, indicating an improvement in the ease of doing business.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
