India is projected to more than double its gross domestic product to USD 10.6 trillion by 2035, according to a report by Morgan Stanley. The country is also expected to become the world’s third-largest economy by 2028, driven by decentralised growth and state-level industrial expansion.
Key Highlights From The Economic Forecast
- Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka are expected to each approach the USD 1 trillion GDP mark by 2035
- India is likely to contribute around 20 percent to global economic growth over the next decade, boosting multinational earnings
- The top-performing states currently include Maharashtra, Gujarat, and Telangana, while Chhattisgarh, Uttar Pradesh, and Madhya Pradesh have shown significant improvement in rankings
Infrastructure And Policy Drivers
- Central government capital expenditure has risen to 3.2 percent of GDP in FY25, up from 1.6 percent in FY15
- Major infrastructure programmes such as PM Gati Shakti, Bharatmala, Sagarmala, and UDAN are being executed alongside state-led initiatives
- Competitive federalism is enabling states to attract investments through tailored policies and business-friendly reforms
Outlook
India’s rise as a global manufacturing hub and its ability to double per capita income within seven years will depend on continued collaboration between the Centre and states. The report underscores the importance of state-level governance in shaping national economic outcomes.
Sources: Morgan Stanley, Businessworld, Moneycontrol, Economic Times, News18, Zee Business.