India is set to become the world’s third-largest economy with a projected GDP of $7.3 trillion by 2030, the Union Government said on Saturday. The country currently ranks as the fourth-largest economy.
According to official projections, India will touch a GDP of ₹4,26,45,000 crore ($5 trillion) by 2027 and surpass Germany by 2028. By 2030, India is expected to claim the third spot globally.
This announcement came after India’s GDP growth accelerated to 7.8 per cent in the first quarter (April-June) of the current financial year. The figure was higher than the 6.5 per cent growth recorded in the same quarter of FY 2024-25, the Ministry of Statistics said.
Services Sector Fuels Growth
The government said India’s services activity has kept the growth rate above expectations for two consecutive quarters. Services sector growth hit 9.3 per cent in April-June 2025, boosting overall momentum.
Key contributors were trade, hotels, transport, communication, and services linked to broadcasting. Financial, real estate, and professional services also showed gains. Public administration, defence, and other services recorded steady growth.
The government attributed the momentum to decisive governance, visionary reforms, and active global engagement. It said easing inflation, higher employment, and strong consumer sentiment would further drive growth in the coming months.
GVA and Agriculture Sector Performance
Gross Value Added (GVA), considered a more accurate measure of economic activity, registered 7.6 per cent growth in April-June 2025. GVA is calculated by subtracting net indirect taxes, after adjusting for subsidies, from the GDP.
Economic Affairs Secretary Anuradha Thakur said the numbers reflect the basic resilience of the Indian economy. She noted that growth was visible across manufacturing, construction, and services. Agriculture also showed robust performance, aided by strong rabi harvests and kharif sowing.
“We have a good buffer stock and adequate rainfall. On the demand side, domestic consumption has been the main driver. Net exports contribute little to demand in our economy,” Thakur said.
To read more such news, download Bharat Express news apps
