India is projected to become the world’s third-largest economy by 2028, with its GDP expected to exceed $10 trillion by 2035, driven by key states reaching significant economic milestones, according to a report by Morgan Stanley.
India is on the path to becoming the third-largest economy in the world by 2028, with its gross domestic product (GDP) anticipated to more than double to $10.6 trillion by 2035. This forecast comes from a recent report by Morgan Stanley released on July 23.
The financial services firm’s analysis suggests that India’s growth will be significantly influenced by its states, with Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka expected to reach the $1 trillion economic milestone in the coming years.
Currently, the leading states include Maharashtra, Gujarat, and Telangana, according to Morgan Stanley. Additionally, Chhattisgarh, Uttar Pradesh, and Madhya Pradesh have shown substantial improvements in their economic rankings over the past five years.
The report highlights that India is poised to contribute approximately 20 percent to global growth in the near future, thereby elevating the earnings potential for major multinational corporations operating in the region.
In its latest bi-monthly monetary policy review, the Reserve Bank of India (RBI) maintained its GDP growth forecast for the fiscal year 2026 at 6.5 percent. This outlook comes after increased central government expenditure on infrastructure, which has risen to 3.2 percent of the GDP for fiscal year 2025, compared to 1.6 percent in fiscal year 2015.
According to Moneycontrol, these infrastructural investments and the economic dynamism at the state level are pivotal to India’s projected economic ascent.
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