India is on track to become the world's second largest economy by 2038

India could become the world's second-largest economy by the year 2038, reported EY, a British multinational professional services network. With strong economic fundamentals, a young population, and a sustainable fiscal position, India is expected to continue its robust growth despite global uncertainties.

- BY S VENKAT NARAYAN

The report, called the 'EY Economy Watch’, mentioned that if current growth trends continue, India may become the world’s second-largest economy by 2038 in PPP (Purchasing Power Parity) terms, with a GDP (Gross Domestic Product) projected at $34.2 trillion.

Unlike many other big economies in the world, India has some unique advantages. The average age of people in India in 2025 is just 28.8 years. This means there's a huge number of young, working people who can drive the economy forward for decades.

Further, India has the second-highest savings rate among the world's largest economies. This is great because it means more money is available for big projects and new businesses.