India set to become 3rd-largest economy with GDP of $7.3 trn by 2030
Domestic drivers, led by robust private consumption, played a central role in supporting this expansion
image for illustrative purpose
New Delhi: With GDP valued at $4.18 trillion, India has surpassed Japan to become the world’s fourth-largest economy and is poised to displace Germany from the third rank in the next 2.5 to 3 years with projected GDP of $7.3 trillion by 2030, an official statement said on Monday.
The growth momentum further surprised on the upside, with GDP expanding to a six-quarter high in Q2 of 2025-26, reflecting India’s resilience amid persistent global trade uncertainties.
Domestic drivers-led by robust private consumption-played a central role in supporting this ex-pansion, according to the statement.
India’s real GDP grew 8.2 per cent in Q2 FY2025-26, up from 7.8 per cent in the previous quar-ter and 7.4 per cent in Q4 of 2024-25, led by resilient domestic demand amidst global trade and policy uncertainties. Real gross value added (GVA) expanded by 8.1 per cent, catalysed by buoyant industrial and services sectors.
High-frequency indicators point to sustained economic activity: inflation remains below the low-er tolerance threshold, unemployment is on a declining trajectory, and export performance con-tinues to improve.
