India poised to become 3rd largest economy in the world: Ashwini Vaishnaw

New Delhi, Aug 27: India would soon become the third largest economy in the world, Union Information and Broadcasting, Railways, and Electronics and Information Technology Minister Ashwini Vaishnaw said on Tuesday.

The minister reeled out the growth rates compiled in the IMF’s World Outlook report which shows that India is the fastest-growing economy in 2024 with a growth rate of 7 per cent, followed by China with an estimated growth rate of 5 per cent.

The growth rate for the US, which is currently the largest economy in the world with a GDP of around $28.8 trillion, is estimated at 2.6 per cent which places it at the 7th spot in the pace at which its economy is growing.

The other economies that figure among the 10 fastest growing economies in the world include Indonesia at the 3rd rank with an estimated GDP growth of 5 per cent, followed by Turkey with 3.6 per cent. Next on the list are Russia (3.2 per cent), Poland (3.1 per cent), Spain (2.4 per cent), and Mexico at the 10th rank with a projected GDP growth rate of 2.2 per cent.

The International Monetary Fund had last month raised India's GDP growth forecast for 2024-25 to 7 per cent from 6.8 per cent earlier.

"The forecast for growth in India has also been revised upward, to 7 per cent, this year, with the change reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas," the IMF said in its World Economic Outlook report. In the case of advanced countries, the GDP growth rate of the US has been forecast at 2.6 per cent for 2024 and 1.9 per cent in 2025. Japan is expected to grow at 0.7 per cent in 2024 and improve to 1 per cent in 2025.

The GDP growth for the Euro area has been forecast at 0.9 per cent in 2024 which is expected to accelerate to 1.5 per cent in 2025. Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 per cent in 2024 and 3.3 per cent in 2025.