By 2060, India could become the world’s largest economy, and by 2031, it could be the 2nd-largest.

India has set ambitious goals for its economic growth, with the RBI Deputy Governor stating that it could become the world’s second-largest economy by 2031. Mr. Patra made this declaration during the Mid-Career Training Programme for Indian Administrative Service officials on July 9. He emphasized that India’s economic journey has been challenging yet significant, highlighting the country’s achievement of becoming a $3.6 trillion economy in the last financial year. Furthermore, Mr. Patra stressed that India’s per capita income places it in the lower middle-income group of countries and that the country would need to grow at a rate of 9.6% per annum for the next decade to break free from this classification and become a developed economy.

The Organisation for Economic Cooperation and Development (OECD) also projects that India may overtake the US in terms of the second-largest economy by 2048. In addition, the deputy governor discussed projections for inflation and shared positive news about the banking system’s decreasing non-performing assets and strong capital and liquidity buffers. These remarks on India’s economic prospects provide insight into the country’s potential for significant growth and offer an optimistic outlook for its future trajectory.