A report from EY Economic Watch predicts that by 2038, India is expected to surpass the US in Purchasing Power Parity (PPP) only if both countries continue to grow at the forecast rates beyond 2030. India’s economy is one of the most dynamic, and it is now expected to reach $34.2 trillion over the next 13 years, making it the second-largest economy in the world in terms of Purchasing Power Parity (PPP), after China.
The expected average growth rates for India and the United States are expected to be 6.5% and 2.1%, respectively, during the period from 2028 to 2030, as stated in the report. This report was released after Donald Trump imposed 50% tariffs on Indian goods, suggesting that current expectations may not be sustainable.
Based on the IMF projection, the EY report stated that the US, Germany, and China are expected to lag, as India is showing better progress, with estimates reaching $20.7 trillion by 2030. India’s growth is 2.3 times that of the US in 2024. Now, India’s forecasted growth rate is expected to be between 3.1 and 3.6 times that of the US.
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