India to become world's 2nd-largest economy by 2038: EY report
Big news: India is on track to become the world's second-largest economy (in purchasing power parity terms) by 2038, according to a recent EY report based on IMF data.
With GDP projected to soar to $34.2 trillion, India's youthful population and falling government debt are expected to drive this massive growth.
Youthful population, falling debt to drive growth
India's median age will be just 28.8 years in 2025—meaning a young, energetic workforce ready for action.
The country's debt-to-GDP ratio is also dropping from 81.3% in 2024 to 75.8% by 2030, which helps keep the economy healthy.
Major reforms like GST and the Insolvency Code are making business smoother, while investments in AI, semiconductors, and renewable energy are boosting resilience.
If all goes as planned, India could even overtake Germany (in market exchange rate terms) as soon as 2028!