According to the August 2025 edition of EY Economy Watch, India’s economy is on track to grow significantly, potentially reaching $20.7 trillion by 2030 and $34.2 trillion by 2038. The report highlights India’s strong fundamentals, demographic advantage, and continued structural reforms as key factors behind this projected expansion.
Currently the world’s fourth-largest economy with a nominal GDP of $4.19 trillion, India benefits from a young median age of 28.8 years, high rates of savings and investment, and a declining debt-to-GDP ratio—expected to drop from 81.3% in 2024 to 75.8% by 2030. These factors position India to surpass other major economies and possibly become the world’s second-largest economy within 13 years.
If India maintains an average growth rate of 6.5% versus 2.1% for the U.S. between 2028 and 2030 (as per IMF projections), India could surpass the U.S. in Purchasing Power Parity (PPP) terms by 2038.
EY’s Chief Policy Advisor DK Srivastava stated that India’s skilled workforce, investment levels, and manageable debt position make it resilient amid global uncertainties, enhancing its prospects of achieving its Viksit Bharat vision by 2047.
