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India's Economic Leap: Upper-Middle Income by 2030?
20 Jan
Summary
- India aims for upper-middle income status by 2030.
- Projected to be the third largest economy by 2028.
- Requires sustained GDP growth and policy reforms.
India is on track to achieve upper-middle income country status by 2030, a significant economic milestone. This transition will place India among nations like China and Indonesia. Projections indicate India will become the third-largest economy globally even earlier, by 2028, surpassing Germany.
The nation's economic trajectory is marked by rapid growth, with its economy expected to reach $5 trillion by 2027/FY28 and $10 trillion by 2035/FY36. Achieving upper-middle income status, defined by a per capita GNI of around $4,500, requires a nominal GDP growth of approximately 11.5%.
Sustaining this growth requires a continued commitment to reform agendas. While India's per capita GNI has shown robust growth, reaching high-income status by 2047 would necessitate even higher compounded annual growth rates. The World Bank's classification system highlights the upward mobility of economies over time.
