India Projected to Become World’s Second-Largest Economy by 2038

PwC report highlights strong GDP growth, resilience against trade pressures

India’s economy is on track to reach $20.7 trillion by 2030 and could rise to $34.2 trillion by 2038, positioning the country as the world’s second-largest economy after China, according to a report by PricewaterhouseCoopers (PwC).

 

The report emphasizes that India’s growth trajectory remains robust, even in the face of external pressures such as U.S. trade tariffs, which may only reduce GDP growth by 0.1%. With an average annual growth rate of 6.5% projected from 2026 onward, India is expected to surpass the United States in economic size by 2038.

 

PwC noted that India’s competitive edge will stem from its expanding workforce, demographic advantages, rapid adoption of advanced technologies, and increasing productivity. It highlighted that investments in critical technologies and innovation will be crucial for India to meet its ambition of becoming a developed economy by 2047.

 

The International Monetary Fund (IMF) has already ranked India as the world’s third-largest economy in purchasing power parity (PPP) terms, with GDP estimated at $14.2 trillion in FY 2024-25. The IMF projects that between 2028 and 2038, India’s GDP will grow at least 3.6 times faster than that of the U.S.

 

Experts suggest that by strengthening industrial capacity and continuing economic reforms, India can move closer to its aspiration of being a global economic leader.