India is now a $3.1 trillion economy

India is set to regain its position as the world’s fastest growing major economy in the current fiscal ending March 31, 2022, and is likely to overtake Japan as Asia’s second-largest economy by 2030 when the country’s GDP is projected to surpass that of Germany and the UK to rank as the world’s No.3.

The size of the Indian economy, based on current prices in dollar terms, is estimated to be $3.1 trillion. It is currently the sixth-largest in the world, behind the US, China, Japan, Germany and the UK.

India’s economy is expected to grow 9.2% in the current fiscal, helped by a strong agriculture sector and recovery in manufacturing, construction and services sector, but the third Covid wave will hurt expansion in the coming months.

According to a news journal reports , If a growth of 9.2% is realized it would be the fastest growth since 1988-89 when the economy grew at 9.6%. The data that is available for 17 years will be the fastest expansion under the new methodology.

Nominal GDP (including inflation) is estimated at 17.6%. The size of the economy is estimated at $3.1 trillion based on current prices in dollar terms.

The World Bank estimated, India’s GDP in current dollar terms grew to $2.9 trillion in 2019, which fell to $2.7 trillion in 2020 due to the impact of COVID.

This growth rate will also help it retain the tag of the fastest growing major economy in the world. The economy has recovered after the severe impact of the strictest lockdown imposed to contain the spread of coronavirus, which led to a record 24.4% contraction in the June quarter of 2020-21.

The GDP estimate of the National Statistical Office (NSO) is slightly lower than that of the Reserve Bank of India (RBI), which had projected the economy to grow at 9.5%. The International Monetary Fund (IMF) also expects it to expand on similar lines.

London based IHS Markit has estimated in its the newest published report that by 2030, India can overtake Japan as Asia’s second largest economic system and India’s GDP will overtake the economies of Germany and United Kingdom and grow to be the third largest economic system on the earth. At present, India’s economic system is the sixth largest on the earth after the US, China, Japan, Germany and the UK and if India manages to grow to be the world’s third economic system within the subsequent eight years, it would actually be an unimaginable achievement for India.