Will India Emerge as the 3rd Largest Economy with a $7.3 Trillion GDP by 2030?

New Delhi, Aug 30 (NationPress) Transitioning from the world's fourth-largest economy, India is poised to ascend to the third-largest position by 2030 with an impressive GDP of $7.3 trillion, according to the Union Government's announcement this Saturday.

"By 2027, India is expected to achieve a GDP of Rs 4,26,45,000 crore ($5 trillion), and we are set to overtake Germany by 2028. The projection for 2030 places India firmly as the world’s third-largest economy with a GDP of $7.3 trillion," the government stated.

This optimistic forecast follows India's GDP growth, which surged to 7.8 percent for the first quarter (April-June) of the current financial year, a notable increase from 6.5 percent during the same quarter of FY 2024-25, as reported by the Ministry of Statistics.

“India’s robust services sector has propelled GDP growth beyond expectations for the second consecutive quarter, reaching an impressive 7.8 percent for April-June 2025. This rapid expansion solidifies India’s status as the fastest-growing major economy globally,” the government elaborated.

The government credits this economic momentum to decisive governance, visionary reforms, and active global engagement.

With declining inflation, increased job opportunities, and positive consumer sentiment, private consumption is anticipated to further stimulate GDP growth in the upcoming months.

Additionally, the government highlighted that the significant growth in April-June 2025 has been driven by the services sector, which recorded a remarkable 9.3 percent growth rate.

All facets of the services sector, including trade, hotels, transport, communication, broadcasting, financial services, real estate, professional services, and public administration, have shown upward growth trends.

Moreover, the GVA growth, considered a more accurate indicator of economic activity, reached 7.6 percent in April-June 2025. GVA is calculated by deducting net indirect taxes and subsidies from the GDP.

“The Q1 figures reflect the inherent resilience of our economy. We have observed broad-based growth across manufacturing, construction, and services, along with a robust performance in agriculture. The rabi harvest and kharif sowings have significantly exceeded last quarter's outcomes,” stated Anuradha Thakur, Economic Affairs Secretary, Ministry of Finance.

“We maintain a healthy buffer stock, and favorable rainfall conditions have aided this growth. Domestically driven demand remains the primary growth driver, as net exports contribute minimally to our economy,” she added.