India to be third largest economy by 2028: Study

Country's share in the world GDP is projected to rise from 3.5% to 4.5% in 2029

- Press Trust of India

NEW DELHI: India will be the world's third-largest economy by 2028 as it becomes the world's most sought-after consumer market and gains share in global output, driven by macro stability influenced policy and better infrastructure, Morgan Stanley said.

From a USD 3.5 trillion economy in 2023, the Indian economy is projected to expand to USD 4.7 trillion in 2026, which will make it the fourth largest in the world behind the US, China and Germany. In 2028, India will overtake Germany as its economy will expand to USD 5.7 trillion. According to Morgan Stanley, India was the 12th largest economy in the world in 1990, slipped to 13th position in 2000 before rising to 9th rank in 2020 and 5th in 2023.

India's share in the world GDP is projected to rise from 3.5 per cent to 4.5 per cent in 2029. It projects three scenarios for India's growth - Bear - where the economy expands to USD 6.6 trillion by 2035 from USD 3.65 trillion in 2025, Base - where it grows to USD 8.8 trillion and Bull - where the size balloons to USD 10.3 trillion.

It saw GDP per capita rising from USD 2,514 in 2025 to USD 4,247 in the Bear scenario in 2035, USD 5,683 under the Base scenario and USD 6,706 under the Bull scenario.