India will become the world’s third-largest economy by 2028, overtaking Germany, according to a report by global financial services firm Morgan Stanley.

The report said, the Indian economy, valued at 3.5 trillion dollars in 2023, is projected to expand to 4.7 trillion dollars by 2026. In 2028, India will overtake Germany as its economy will expand to 5.7 trillion, Morgan Stanley said. The report said, India has emerged as the world’s most sought-after consumer market and has gained share in global output, facilitated by stable macroeconomic policies and improved infrastructure.

According to Morgan Stanley report, India’s global economic ranking has improved significantly, moving from the 12th largest economy in 1990 to the 13th in 2000, and then rising to 9th in 2020 and 5th in 2023.

It said, the contribution of India to global GDP is expected to increase from 3.5 percent to 4.5 percent by 2029. Morgan Stanley said, India is likely to gain a share in global output in the coming decades driven by strong foundational factors, including robust population growth, a functioning democracy, macro stability influenced policy, better infrastructure, a rising entrepreneurial class and improving social outcomes.

Bharatiya Janata Party has said that this extraordinary ascent is not by chance but the result of years of visionary leadership and bold economic reforms. In a social media post, BJP said, when Prime Minister Narendra Modi took charge, he set a course for transformation. The initiatives like ‘Make in India’ and ‘Digital India’ ignited a wave of industrial innovation, turning villages into manufacturing hubs and cities into thriving economic centres, the party said.