FX.co ★ India’s rapid expansion to drive global economic growth

India is not just enjoying unprecedented economic growth but is also turning into a strategic actor in Southeast Asia. The country is taking major strides to expand its influence in the region, creating new alliances and trade routes. Western investors are increasingly gravitating to India as an alternative to China. Moreover, they are relocating their manufacturing bases there. In addition, India has overtaken China as the world's most populous country, which means it has a large pool of labor.

India is currently experiencing an economic boom. The economy expanded by 7.8% in the second quarter, marking the fastest pace of growth in a year. “The momentum in the economy looks really quite strong at the moment. When we look over the next decade, we do expect Asia-Pacific to be the fastest growing region of the world economy,” S&P Global's Asia-Pacific chief economist Rajiv Biswas said. The expert reiterated the rating agency’s forecast that India would surpass Japan to become the third-largest economy, with its gross domestic product growing from $3.5 trillion in 2022 to $7.3 trillion by 2023. Judging by recent data, such an optimistic forecast looks quite realistic.

S&P Global believes that India's economic trajectory will be an important driver for global growth, with some Asian countries facilitating global economic development in both the short and long terms. In addition to India, the key economies contributing to the world economic expansion in the next decade will be Indonesia, the Philippines, and Vietnam.

According to Indian Prime Minister Narendra Modi, the country now has "1,000 years of greatness" ahead, which will ensure economic and social transformation through "demography, democracy, and diversity."