This is an election year and market is destined to see a lot of volatility before the elections. However as the final election outcome is almost well known due to a lack of proper opposition to the present government we may not see the market going down too much any time soon, at least till the election results are all out in black and white. While delivering her Interim Budget speech in Parliament finance minister expressed strong confidence, and emphasized that Modi is poised to return as the Prime Minister for an unprecedented third term. And she has several agencies to support her claim.
Like Fitch Ratings said that it expects India to be among the fastest-growing nations in the world in the next fiscal, with resilient GDP growth of 6.5 percent in 2024-25. At present, India is the world’s fifth-largest economy, coming after the United States, China, Germany, and Japan. By 2030, India’s GDP is projected to exceed Japan’s, making it the second-largest economy in the Asia-Pacific region.
S&P Global Market Intelligence also said that India is likely to overtake Japan to become the world’s third-largest economy with a GDP of USD 7.3 trillion by 2030. By 2022, the size of the Indian GDP had already become larger than the GDP of the UK and also France. By 2030, India’s GDP is also forecast to surpass Germany. The US at present is the world’s largest economy with a GDP of USD 25.5 trillion. It makes up for a quarter of the world’s GDP. China is the second largest economy with a GDP size of about USD 18 trillion, which is almost 17.9 per cent of the world GDP. Japan is a distant third with USD 4.2 trillion GDP, followed by Germany with USD 4 trillion GDP.
The long-term outlook for the Indian economy is supported by a number of key growth drivers – large and fast-growing middle class, and rapidly growing large industrial sector which have made India an increasingly important investment destination for a wide range of multinationals in many sectors, including manufacturing, infrastructure and services. The digital transformation is expected to accelerate the growth of e-commerce, changing the retail consumer market landscape over the next decade. By 2030, 1.1 billion Indians will have internet access.
And it all may happen just because of political stability.
