The Indian economy can reach $ 20.7 lakh crore by 2030 by 2030 amidst global trade volatility and American fees pressures and can also become the second largest economy in the world, leaving the US behind by 2038. Britain’s accounting firm EY has expressed this possibility in a report. In a report released on Wednesday, professional service company EY said that India is currently the third largest economy on the basis of PPP after China and America. According to the report, India’s GDP (GDP) in FY 2024-25 stood at $ 14.2 lakh crore in terms of PPP, which is about 3.6 times more than the economy, which is estimated at market exchange rates.
India will leave America behind
The EY is assessed that in the event of India and the US maintaining an average growth rate of 6.5 percent and 2.1 percent respectively, India can overtake the American economy in terms of PPP by 2038. At that time, India’s GDP will be 34.2 lakh crore dollars. During this period, by 2028, India can also become the third largest economy, beating Germany at exchange rates. EY India Chief Policy Advisor DK Srivastava said, “India’s comparative strength, such as youth and skilled workforce, strong savings and investment rates and sustainable debt profiles will be helpful in maintaining high growth rate despite global instability. India is moving rapidly towards the target of 2047 by developing capabilities in essential technologies.
America will shock America with tariff
However, this report says that India’s GDP may get a shock of up to 0.9 percent due to the US levy 50 percent. However, if one-third of the effect comes as a decrease in demand, the total effect can be limited to 0.3 percent of GDP. According to the EY report, this effect can be limited to only 0.1 percent of GDP with the help of proper policy measures. In this case, the country’s economic growth rate in the current financial year can be reduced from 6.5 percent to 6.4 percent. The report says that the high US fee will affect products worth more than $ 48 billion of Indian exports. These include areas like clothes, gems and jewelery, shrimp, leather, shoes, slippers, chemicals, animal products and mechanical and electrical machinery. However, this fee is not applied to medicine, energy and electronic goods.