New Delhi, Aug 30 (IANS) From being the world’s fourth-largest economy, India is on track to become the third-largest by 2030 with a $7.3 trillion GDP, the Union Government said on Saturday.

“India is projected to reach a GDP of Rs 4,26,45,000 crore ($5 trillion) by 2027 and is on course to surpass Germany by 2028. By 2030, India is set to become the world’s third-largest economy with a projected GDP of $7.3 trillion,” the government said.

This comes as India’s GDP growth accelerated to a robust 7.8 per cent in the first quarter (April-June) of the current financial year compared to the growth of 6.5 per cent during the same quarter of FY 2024-25, as per official figures released by the Ministry of Statistics.

“India’s strong services activity has helped GDP growth comfortably beat expectations for the second quarter in a row, rising to an impressive high of 7.8 per cent for April-June 2025. The swift growth in the first quarter of the current financial year further consolidates India’s position as the world’s fastest-growing major economy,” the government said.

The government attributed the momentum to “decisive governance, visionary reforms, and active global engagement”.

With easing inflation, higher employment, and buoyant consumer sentiment, private consumption is expected to further drive GDP growth in the coming months.

Further, the government explained that the sharp pick-up in growth in April-June 2025 has been catalysed by the services sector growth hitting a high of 9.3 per cent.

All components of the services sector, such as trade, hotels, transport, communication, and services related to broadcasting, financial, real estate, and professional services, and public administration, defence, and other services, have been on an upward trajectory.

The GVA growth, which is seen as a more meaningful measure of activity levels, registered a high of 7.6 per cent in April-June 2025. GVA is arrived at by subtracting net indirect taxes, indirect taxes after adjusting for subsidies — from the GDP.

“In our view, Q1 numbers reflect the basic resilience of our economy. On the supply side, we have seen an all-round growth. On the manufacturing, construction, and service side activity, as well as the fact that the agriculture side has shown robust growth. The rabi harvest, as well as kharif sowing, have been much in excess of the last quarter,” said Anuradha Thakur, Economic Affairs Secretary, Ministry of Finance

“We have a good buffer stock. We have had a good rainfall…On the demand side, the primary drivers have been domestic, and in our economy, net exports don’t contribute so much on the demand side,” she added.

–IANS

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