NewDelhi: While India is expected to see a slowdown in growth for the current fiscal year, the country nonetheless outstrips other major economies and is due to become the world’s third-largest economy by purchasing power parity (PPP) come 2025.
India’s GDP growth rate for the 2024-25 fiscal year is estimated to fall to 6.4%, compared to 8.2% in the year before, recent estimates show. Nevertheless, that growth rate is slow enough to place India as the fastest-developing major economy in the world, ahead of a number of European economies that are struggling.
India has been estimated to grow its economy to $17.36 trillion in 2025, from $16 trillion in 2024, when measured by PPP. With this, it has increased by over 1 trillion dollars in a single year, which shows how fast India’s economy is growing. Meanwhile, India’s nominal GDP is forecast to reach $3.8 trillion in 2025, putting it fifth on the global ranking for GDP by this measure.
India’s stunning progress is exemplified by comparison with France, a major European economy. When PPP was figured out in 1983, France’s PPP economy was $0.7 trillion and India’s $0.5 trillion. Jump ahead to 2025, and India’s PPP economy is estimated to be nearly four times the size of France, which is forecast to grow to $4.5 trillion.
This dramatic shift accounts for a growth in India’s PPP economy of 3,372 percent since 1983 compared to 542.86 percent in France since the same period. In keeping with its ambitions to become a $5 trillion economy by the end of 2025, a target that may seem daunting with the current figures, the Indian government is looking for ways to ‘double’ its GDP.
Although India’s nominal GDP growth may be slowing down, it continues to propel its PPP-based economic strength to make India a powerhouse globally, overtaking many developed nations and narrowing the gap with the world’s largest economies.