Winning Bizness Desk

Mumbai. India’s economy has doubled in the last decade, making it the fastest-growing major economy in the world. According to data from the International Monetary Fund (IMF), India’s GDP has grown by 105% over the past ten years. In 2015, India’s GDP stood at $2.1 trillion; it has now reached $4.3 trillion. This impressive growth comes at a time when most developed economies have seen much slower expansion.IMD Predicts Early Arrival of Monsoon This Season

India to Become World’s Fourth-Largest Economy

If the current growth momentum continues, India is expected to surpass Japan and become the world’s fourth-largest economy by the third quarter of 2025. Japan’s GDP currently stands at $4.4 trillion. Moreover, by the second quarter of 2027, India could also overtake Germany (currently at $4.9 trillion GDP) and climb to the third spot globally, according to IMF projections.

$10 Trillion Economy by 2032

Commerce Minister Piyush Goyal stated that under Prime Minister Narendra Modi’s leadership, India’s GDP has doubled in a decade. At the current rate of expansion, India is projected to add $1 trillion to its GDP every 1.5 years. This trajectory could lead the country to become a $10 trillion economy by 2032. In comparison, India’s decade-long GDP growth outpaced other major economies — China (76%), the US (66%), Germany (44%), France (38%), and the UK (28%).

Debt Situation More Stable Than Global Giants

Despite its expanding size, India remains in a stronger position when it comes to national debt. While the US holds a debt of $36.22 trillion and China $2.52 trillion, India’s total debt stands at a relatively modest $712 billion. This positions India as a financially more stable economy among the top global players.

Understanding GDP and Its Components

Gross Domestic Product (GDP) is a measure of a nation’s economic health, representing the value of all goods and services produced within a country's borders during a specific period. GDP includes output from foreign companies operating within India. It is calculated using the formula GDP = C + G + I + NX, where C is private consumption, G is government spending, I is investment, and NX is net exports. India’s GDP is calculated using both real and nominal terms, with the base year for real GDP being 2011-12. Consumption, private sector growth, government expenditure, and net exports are the four major engines driving GDP fluctuations.

Key Highlights in Brief

• 1. India’s GDP has doubled in 10 years — from $2.1 trillion in 2015 to $4.3 trillion today.
• 2. It is the fastest-growing major economy globally with 105% growth over a decade.
• 3. India is expected to overtake Japan by Q3 2025 to become the world’s fourth-largest economy.
• 4. At the current pace, it may surpass Germany by mid-2027 and become third-largest.
• 5. India aims to become a $10 trillion economy by 2032, adding $1 trillion every 1.5 years.
• 6. India’s economic performance outshines the US, China, UK, Germany, and France over the past decade.
• 7. With only $712 billion debt, India is in a stronger fiscal position than the US and China.