India is poised to emerge as the world’s third-largest economy by 2027, surpassing Japan and Germany, according to Finance Minister Nirmala Sitharaman. Speaking at the Indo-Pacific Regional Dialogue on November 15, Sitharaman highlighted that India’s economy is forecasted to grow at nearly 7% this year—an impressive feat given the global economic challenges. She noted that, despite various geopolitical conflicts impacting global supply chains, India’s economy remains resilient.
According to the IMF, India’s GDP is expected to cross the $5 trillion mark by 2027. By 2047, the country aims to reach developed economy status. This growth is driven by strong government initiatives, with a special focus on transitioning from a traditional “brown” economy to a sustainable “blue” economy, capitalizing on India’s expansive coastal regions and maritime assets.
India’s strategic positioning in the Indo-Pacific, which accounts for 60% of the global GDP and nearly half of global merchandise trade, is further bolstering its economic outlook. Despite the region’s geopolitical tensions, particularly between great powers, India remains committed to upholding a rules-based international order.
Sitharaman also emphasized the significance of the India-Middle East-Europe Connectivity Corridor (IMEC), one of the most promising global projects aimed at improving transportation efficiency and fostering economic unity. The corridor, signed at the G20 Summit in New Delhi, promises to enhance connectivity through a multimodal network of shipping, railways, and roads. This initiative is expected to reduce logistics costs, generate employment, and contribute to environmental sustainability.
Moreover, India has significantly improved its global logistics and shipping rankings. According to the World Bank’s Logistics Performance Index, the turnaround time at Indian ports has improved, surpassing several established maritime centers. India’s fiscal and policy support for the maritime sector continues to grow, with numerous projects aimed at improving infrastructure and enhancing its standing as a global trade hub.
Sitharaman concluded by stressing India’s commitment to transitioning towards a sustainable blue economy and its readiness to shoulder greater responsibilities in the Indo-Pacific, solidifying its role as a global economic leader in the coming decades.
