India is projected to become the world’s second-largest economy by 2038, according to EY. Strong fundamentals, a young workforce, fiscal discipline, and high domestic demand are driving this growth despite global challenges.

BulletsIn

• India may reach $34.2 trillion GDP (PPP) by 2038
• Will surpass major economies, become 2nd largest globally
• By 2028, India to be 3rd largest in market exchange rate terms
• Average age in 2025 just 28.8 years, strong workforce base
• 2nd highest savings rate among large economies, funds for growth
• Debt-to-GDP ratio to fall from 81% (2024) to 75% (2030)
• Growth driven mainly by domestic market, less reliant on global trade
• Other big economies face ageing populations, rising debts
• Even US tariffs impact only ~0.9% GDP, manageable with diversification
• Growth aligns with India’s 2047 goal of becoming a “Viksit Bharat”