India’s goal of becoming a $5 trillion economy may come sooner than expected. Vishrut Rana, Asia Pacific Economist at S&P Global Ratings, believes the milestone could be achieved by 2028, ahead of the IMF’s estimates.
India’s strong growth is driven by domestic consumption, infrastructure investment, and digital transformation. Government initiatives like production-linked incentives for manufacturing and expanding digital services are also boosting growth. Sustaining annual growth above 6% will be key.
Rana noted that external factors could affect progress. Rising oil prices, global financial volatility, and shifts in demand could influence the pace. Still, India’s diversified economy, strong services sector, and growing manufacturing base provide resilience.
Reaching $5 trillion early would reflect the success of India’s reforms. Demographic advantages, a rising middle class, and efforts to boost industrial competitiveness will help. It would signal high-quality, sustainable growth and strengthen India’s position as a global economic powerhouse.
For investors, it highlights opportunities in one of the fastest-growing major economies. For policymakers, it validates reforms and underscores India’s potential to shape global economic trends.
