India to surpass Japan to become Asia's second largest economy by 2030

Financial information services provider IHS Markit said in a report last Friday that India is likely to surpass Japan to become Asia's second-largest economy by 2030. By then , its GDP is expected to surpass Western European countries such as Germany , France and the United Kingdom to become the world's third-largest economy.

According to the IHS Markit report , India 's declared GDP is expected to increase from US$2.7 trillion in 2021 to US$8.4 trillion in 2030. India's current ultra-fast economic expansion is expected to make its GDP surpass Japan in 2030 and become the second largest economy in the Asia-Pacific region.

Currently, India ranks sixth among the world's economies , ahead of the United States, China, Japan , Germany and the United Kingdom.

India's bright economic outlook is supported by several key factors

According to IHS Markit , a key positive element of the Indian market is its large and rapidly growing middle class, which helps drive consumer spending , and IHS Markit predicts that consumer spending in the Indian market will double from $1.5 trillion in 2020 to $3 trillion by 2030.

IHS Markit mentioned that for the entire fiscal year 2021-2022 , India's real GDP growth rate is expected to be 8.2%, which will improve from the severely contracted growth rate of 7.3% in 2020-2021 . Moreover , India 's economy is expected to continue to grow strongly at a rate of 6.7% in fiscal year 2022-2023 .

In recent years, thanks to its rapidly growing consumer market and its large industrial sector , India has gradually become an important investment destination for many multinational companies. In the past few years, giant financial technology companies such as Google and Facebook have also been attracted by India's huge consumer market and invested heavily.

Looking ahead, India will become the most important long-term investment market for many multinational companies, and many industries in India , including manufacturing, infrastructure construction and services, will continue to see good development. It is not impossible for India to surpass Japan and become the second largest economy in Asia.

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