India's Economic Ascent: A Trillion-Dollar Journey

India's economy is forecasted to reach USD 20.7 trillion PPP by 2030, potentially becoming the world's second-largest economy by 2038, according to an EY report. Despite global tariffs and challenges, India's growth is supported by high investment rates, favorable demographics, and technological advancements.

India is poised for significant economic growth, with projections showing its economy could reach USD 20.7 trillion in purchasing power parity (PPP) terms by 2030, according to a recent EY report. The report outlines how India may emerge as the world's second-largest economy, boasting a GDP of USD 34.2 trillion by 2038, following China.

Despite global headwinds such as US tariffs, India's economic resilience is grounded in strong domestic demand and advancements in modern technologies. The August 2025 issue of EY Economy Watch underscores India's robust saving and investment rates, favorable demographics, and sustainable fiscal position as key growth drivers.

D K Srivastava, Chief Policy Advisor at EY India, emphasized India's comparative strengths, including its skilled workforce and sustainable debt profile. The report also suggests that with strategic countermeasures, India can mitigate the adverse effects of US tariffs on its GDP growth by steering exports to other global markets.

(With inputs from agencies.)