India to become world's 3rd largest economy by 2032, China to beat US by 2037: WELT

India economy growth forecast: The Indian economy, which is one of the fastest-growing economies in the world currently, is poised to beat Japan and Germany to become the world's third-largest economy by 2032, according to a recent report by the World Economic League Table (WELT). The findings shed light on India's impressive growth trajectory, driven by a combination of factors including demographic trends, robust GDP expansion, and strategic policy initiatives.

India's growth trajectory

The WELT report underscores India's economic resilience, projecting a GDP growth rate of 6.4 per cent in the fiscal year 2023/24, following a remarkable 7.2 per cent growth in the previous fiscal year. This momentum is expected to propel India's output beyond pre-pandemic levels by a staggering 17.2 per cent.

Despite facing headwinds such as global demand moderation and inflationary pressures, India remains steadfast in its pursuit of economic prosperity. The Reserve Bank of India's proactive measures to tighten monetary policy and curb inflation reflect a commitment to maintaining price stability and sustainable growth.

Challenges and opportunities ahead

While India's growth prospects appear promising, the nation grapples with persistent challenges such as poverty, inequality, and infrastructure deficits, the report said. Addressing these issues demands concerted efforts from the government, private sector, and civil society to ensure inclusive and sustainable development.

As the country gears up for the next general elections in 2024, the outcome holds significant implications for the nation's domestic and foreign policy agenda. The election results will shape India's trajectory for the next five years, influencing its relations with neighbouring countries and major global powers.

China's economic outlook

Meanwhile, the WELT report also anticipates China's ascent to the pinnacle of the global economy, surpassing the United States as the largest economy by 2037. Despite challenges such as the gradual recovery from the COVID-19 pandemic and demographic shifts, China's economic policies and population size position it for substantial growth in the coming years.

The projected economic dominance of India and China holds far-reaching implications for global dynamics and geopolitical relations. As these two Asian giants chart their courses toward economic supremacy, the global community braces for a new era of economic competition and cooperation. The evolving landscape underscores the importance of strategic responses and collaborative efforts to address shared challenges and capitalise on emerging opportunities.