A EY report on Wednesday stated that India’s economy can become the second largest economy with a GDP (GDP) of $ 34.2 trillion by 2038 and by 2030, by 2030, the purchasing power equality can reach $ 20.7 trillion. This report further states that if India and the US after 2030 maintains average growth of 6.5 per cent and 2.1 per cent of the 2028-2030 period (according to the IMF forecasts), India can overtake the American economy by 2038 by 2038.
Earlier this month, US President Donald Trump called Russia as well as India a ‘dead economy’. It is estimated that by 2028, India will become the third largest economy leaving behind Germany in terms of market exchange rates. The report also states that if the right measures are taken, India can do a lot of work to the impact of American tariff.
The August 2025 issue of Ey Economy Watch states that India is emerging as one of the five largest economies in the world, with high savings and investment rates, favorable demographics and a stable fiscal status, including all strong economic basic elements.
The report states that India’s strength, dependence on domestic demand and growing capabilities due to increasing capabilities, despite tariff pressure and global recession. The report has comparative economic analysis of the five largest economies keeping in mind the uncertainties and global economic challenges of American tariffs.
Explain that a heavy duty of 50 per cent implemented from August 27 on Indian goods sent to America will affect exports of more than $ 48 billion. The areas that will suffer the high tariff brunts installed by the Trump administration include textiles, gems and jewelery, shrimp, leather and shoes, animal products, chemicals, and electrical and mechanical machinery.
Areas such as pharma, energy products and electronic goods are outside the purview of these comprehensive charges. In 2024-25, the US was about 20% of India’s exports worth $ 437.42 billion. America was India’s largest trading partner in 2021-22. In 2024–25, bilateral trade of goods was $ 131.8 billion (exports $ 86.5 billion and 45.3 billion imports).