India Set to Become World’s Third-Largest Economy by 2028, Overtaking Germany: #MorganStanley Report

In a groundbreaking report by global financial services firm #MorganStanley, India is projected to become the world’s third-largest economy by 2028, surpassing Germany. The report highlights India’s remarkable economic trajectory, driven by stable macroeconomic policies, improved infrastructure, and a booming consumer market.

As of 2023, India’s economy is valued at $3.5 trillion, making it the fifth-largest in the world. By 2026, it is expected to grow to $4.7 trillion, and by 2028, it is projected to reach $5.7 trillion, overtaking Germany. This growth solidifies India’s position as a global economic powerhouse and underscores its rising influence in the world economy.

The report also notes that India’s global economic ranking has seen a dramatic rise over the past few decades. In 1990, India was the 12th largest economy, moving to 13th in 2000, 9th in 2020, and 5th in 2023. By 2029, India’s contribution to global GDP is expected to increase from 3.5% to 4.5%, reflecting its growing economic clout.

MorganStanley attributes India’s economic success to several key factors, including robust population growth, a functioning democracy, macro stability, better infrastructure, a rising entrepreneurial class, and improving social outcomes. These foundational elements have positioned India as the world’s most sought-after consumer market and a significant player in global output.

The report emphasizes that India’s share in global output is likely to continue growing in the coming decades, driven by its strong economic fundamentals. As the country continues to invest in infrastructure, innovation, and human capital, it is poised to play an even more critical role in shaping the global economy.