India is projected to emerge as the world’s second-largest economy by 2038, according to a recent report, despite challenges posed by additional US tariffs on Indian goods.
The report, based on IMF forecasts and analyses by EY, estimates India’s GDP could reach $34.2 trillion in purchasing power parity (PPP) terms by 2038, potentially surpassing the United States. Analysts attribute this growth to India’s favourable demographics, structural reforms, and strong economic fundamentals.
Despite the imposition of US tariffs, the report suggests the impact on India’s GDP will be minimal, with potential reductions of around 0.1%, a manageable effect given India’s robust growth trajectory.
Experts highlight India’s young and skilled workforce, ongoing investments in infrastructure, technology, and manufacturing, as well as international partnerships as key drivers of the country’s economic rise.
If these trends continue, India is expected to surpass Japan and Germany, securing its place as the world’s second-largest economy by 2038.
