India to become 3rd largest economy by 2027, two years before previous forecast

New Delhi: India is likely to get the 3rd largest economy tag in 2027 (2027-28) if it maintains the current rate of growth, and in the process, will surpass both Japan and Germany, said SBI Research in its ‘Ecowrap’ report.

Earlier, SBI Research had expected India to become the third-largest economy in the world by 2029. India is currently ranked third, a movement of seven places upwards of what it was in 2014.

Interestingly, the incremental increase by India between 2022-2027, is expected to be more than the current size of Australia’s economy at USD 1.8 trillion, the report said.

“At this rate, India is likely to add USD 0.75 trillion in every two years, implying that India is all set to touch USD 20 trillion by 2047, at least on current numbers,” the report said, adding that India’s global share in GDP will cross 4 per cent by 2027.

The share of India’s GDP is now at 3.5 per cent, as against 2.6 per cent in 2014 and is likely to reach 4 per cent in 2027.

State-wise, SBI Research said estimates indicate that at least two Indian states, Maharashtra and Uttar Pradesh, will break the USD 500 billion mark in 2027 in terms of economy -- when India achieves the 3rd place in global economy.

“The GDP size of major Indian states in 2027 will be more than the size of some of the Asian and European countries like Vietnam, Norway and so on,” it added.