NEW DELHI : India is expected to grow into a $7 trillion economy by the year 2030, establishing itself as the second-largest economy in the Asia-Pacific region and the third-largest globally, industry body PHD Chamber of Commerce and Industry (PHDCCI) said in a latest report on Wednesday.
The analysis is based on lead macroeconomic indicators including the GDP Growth, Export Growth, Gross National Savings, Total Investments, and Debt to GDP Ratio.
“With a consistent GDP growth rate exceeding 7 per cent over the past two years and a projected continuation of this trend in the current year too, the economy is expected to surpass USD 4 trillion in 2024 and thereafter move to the next orbit in 2025,” said Sanjeev Agrawal, President, PHDCCI in a press statement.
Besides, the report mentions that despite the global headwinds, India’s economy remains resilient.
“Geopolitical conflicts are reshaping the world, disrupting global value chains, and causing inflationary pressures. However, India’s geopolitical significance is growing significantly, earning praise from international institutions,” the report said.
Besides, the industry body also expects the inflation trajectory to average at around 4.5 per cent in 2024 and the central bank is expected to cut the repo rate by 100 basis points, bringing it down to 5.5 per cent by the end of 2024.
Whereas, the markets are expected to remain resilient in 2024, with the Nifty 50 index and SENSEX likely to surpass 25,000 and 75,000, respectively, benefiting from the continued reforms process by the government for the various growth-promising sectors of the Indian economy, said the Industry body PHDCCI.
Meanwhile, the downside risk to India’s economy would be the deepening geopolitical developments, fragmentation in the commodity markets, and inflationary pressures, said the Industry body PHDCCI.