India will emerge as the world's third largest economy by 2028

Current Context: According to a Morgan Stanley report titled “India’s State-Led Economic Transformation” released on 23rd July 2025, India is projected to become the world’s third-largest economy by 2028, overtaking Germany with a GDP of $5.7 trillion.

• GDP is expected to double to $10.6 trillion by 2035, driven by competitive federalism and infrastructure growth.
• 3–5 states (Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, Karnataka) may each reach $1 trillion GSDP, ranking among the top 20 global economies.
• India will contribute 20% of global growth over the next decade, becoming a major engine for multinational earnings.
• Growth is fueled by central schemes like PM Gati Shakti, Bharatmala, Sagarmala, UDAN, and state-led initiatives.

The report emphasizes state-level autonomy, policy innovation, and infrastructure investment as catalysts for transformation.

Question:

Q.1 According to the Morgan Stanley report (July 2025), by which year is India projected to become the world’s third-largest economy?
a) 2025
b) 2026
c) 2028
d) 2030

Answer: c) According to a Morgan Stanley report released on 23rd July 2025, India is projected to become the world’s third-largest economy by 2028, overtaking Germany with a GDP of $5.7 trillion.