New Delhi: Prime Minister Narendra Modi recently said India is on track to become the third-largest economy in the world, so the country must carefully protect its economic interests like farmers, small industries, and job creation. This comes after a report from Morgan Stanley that also predicts India will be the third-largest economy by 2028 and double its GDP to USD 10.6 trillion by 2035.
Currently, India’s economy is growing well. Inflation is low, exports are at record highs, and the rural economy is improving. For example, GST tax collections have increased 7.5 percent year-on-year, inflation dropped to 2.1 percent in June 2025 (lowest in years), and rural incomes and consumption are rising. The Reserve Bank of India lowered interest rates earlier in 2025, which helped boost loans and investments without raising inflation.
Exports have also grown, reaching USD 210 billion in just the first quarter of FY 2025-26, with multiple sectors like electronics and agriculture contributing. Government programs and infrastructure improvements are helping small and medium businesses export more. India’s GDP grew 6.5 percent in FY 2024-25 and is expected to grow similarly in FY 2025-26, keeping India as the fastest-growing major economy.
Looking ahead, India’s GDP is expected to reach USD 7.3 trillion by 2030, making it the third-largest globally, helped by a young population, strong domestic demand, and ongoing reforms. Several Indian states, like Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka, are expected to become economic powerhouses themselves, with some nearing USD 1 trillion GDP each by 2035.
In simple terms: India’s economy is growing fast, inflation is low, exports are strong, and the government is supporting businesses. If this continues, India will soon be the world’s third-largest economy with big states leading the way.
