India to emerge third largest global economy by 2027: Nirmala Sitharaman

NEW DELHI: Finance Minister Nirmala Sitharaman on Wednesday said India is expected to overtake Japan and Germany to emerge as the third largest economy in the world by 2027.

Addressing the Indo-Pacific Regional Dialogue here, Sitharaman said India’s economic growth is estimated to be just under 7 per cent during the year, the highest among major economies, despite global headwinds.

The Indian economy is therefore on the right track and is heading towards a bright future, she said.

Amidst supply-chain disruptions and economic turbulence due to contemporary conflicts that impact the Indo-Pacific, irrespective of whether they are occurring in relatively distant Ukraine or in relatively-proximate Israel or Yemen, and despite the palpable tensions prevalent in the South- and East China Sea, the Indian economy stands out as a bright spot, she said.

“Even according to the usually conservative estimates of the IMF, the Indian economy is set to emerge as the world’s third largest economy by 2027, hopping over Japan and Germany, as its GDP crosses the $5 trillion level. By 2047, India aspires to be a developed economy, “ she said. Talking about India’s ‘Blue economy’, she said, it accounts for roughly 4 per cent of the GDP and represents a sea of opportunities.

India has 9 states and 4 Union Territories situated on the coast, 12 major and 200+ non-major ports situated along its coastline, and a vast network of navigable waterways for international and domestic trade, she said.

According to the UNCTAD, India was the 2nd largest exporter of ocean-based goods and services among developing countries in 2020.

Observing that Indo-Pacific is undoubtedly the world’s most economically dynamic region, she said it encompasses 60 per cent of global GDP, and almost 50 per cent of global merchandise trade.

On the other hand, the Indo-Pacific is also a geopolitically contested space that is being roiled by great power competition, she said.