Here’s the full English conversion of your content with a proper headline:
India Could Become World’s Second-Largest Economy by 2038: EY Report
According to a report by EY, India’s economy could reach a GDP of $34.2 trillion by 2038, making it the world’s second-largest economy. By 2030, India’s GDP in purchasing power parity (PPP) terms could touch $20.7 trillion.
The report further stated that if India and the U.S. maintain their average growth rates of 6.5% and 2.1% respectively (as per IMF projections for 2028–2030), India could overtake the U.S. in PPP terms by 2038.
Trump’s Remarks and Economic Position
Earlier this month, U.S. President Donald Trump called India, along with Russia, a “dead economy.” However, projections suggest that by 2028, India will surpass Germany to become the world’s third-largest economy in market exchange rate terms. The report also noted that with the right policy measures, India could significantly mitigate the impact of U.S. tariffs.
Strong Fundamentals
The August 2025 edition of EY Economy Watch highlighted that India is emerging as one of the top five global economies, supported by strong fundamentals such as high savings and investment rates, favorable demographics, and a stable fiscal position.
Despite uncertainties like tariff pressures and global slowdown, India’s resilience is driven by domestic demand and growing capabilities in modern technologies. The report provided a comparative economic analysis of the world’s five largest economies, factoring in U.S. tariffs and global challenges.
U.S. Tariffs and Trade Impact
From August 27, the U.S. imposed a steep 50% tariff on Indian goods, affecting exports worth over $48 billion. The hardest-hit sectors include textiles, gems & jewelry, shrimp, leather & footwear, animal products, chemicals, and electrical & mechanical machinery.
However, key sectors like pharmaceuticals, energy products, and electronic goods remain outside the scope of these tariffs.
In 2024–25, India’s total exports were valued at $437.42 billion, with the U.S. accounting for nearly 20%. The U.S. was India’s largest trading partner in 2021–22, and in 2024–25, bilateral trade in goods reached $131.8 billion (exports: $86.5 billion, imports: $45.3 billion).
Would you like me to also create a short summary version (3–4 lines) for quick reading on your website?
0 Comments