India to Become World’s Third Largest Economy By 2028!


Indian economy has been through several bold reforms lately and each one of it has been debatable (which is not a bad thing).

But, according to a report by the British Brokerage HSBC, in the next 10 years, India can possibly overtake Japan and Germany to become the third largest economy only if it remains consistent in making positive reforms and focuses more on the social sector.

The further content of this report extends into saying that the social capital is not-sufficient in the country and spending on aspects like health and education is not just desirable for its own sake but is also central to the economic growth and political stability.

India also needs to concentrate on ease of doing business and related aspects.

As per the reports quotes:

In over the next ten years, India will likely surpass Germany and Japan to become the worlds third largest economy in nominal USD and the transition will happen even more quickly on a PPP (purchasing power parity) basis.

Demographical situation and macro stability were pointed out as key strengths for the country in this regard.

The estimates indicate that India will be an economy of worth USD 7 trillion by 2028. Currently, India’s GDP is around USD 2.3 trillion and stands at the fifth spot in the global market.

The report further quotes:

There are limits to one-off reforms. India needs to create an ecosystem of continuous change.

Regarding the case of GST, it said the informal enterprises that create a bulk of jobs in the country may respond to higher taxation but the e-commerce sector can generate 12 million jobs over the next decade, which is half of the 24 million of the shortfall.

Eventually, India will continue to be a services oriented economy but needs to pay extra attention to manufacturing and farm sectors.

On a suggestive note, the report concludes that:


India needs to broaden its specialization beyond just IT in business and Cricket in sports if it wants to take the long run into gaining and holding positions.