India Set to Become a $10 Trillion Economy by 2040

India is on course to make history, with projections showing it could become the world’s third-largest economy by 2040, crossing the $10 trillion GDP mark. This transformation will be powered by four key drivers — development, diversification, digitalisation, and decarbonisation — that are reshaping India’s growth story.

According to economic forecasts, India’s GDP is expected to grow at an average annual rate of 6.7% between 2025 and 2040. If trade and capital inflows remain strong, growth could even surpass 7%.

A major part of this expansion will come from capital formation, human capital investment, and productivity gains. With a working-age population expected to exceed 900 million by 2040, strengthening education, healthcare, and skills will be essential for sustaining growth and improving productivity.

Infrastructure: The Foundation of Future Growth

Public investment remains a cornerstone of India’s economic momentum, especially in infrastructure. The World Bank estimates that India will need at least $2.4 trillion in investment to develop its urban areas and support rapid urbanisation.

Government initiatives like Gati Shakti, the National Infrastructure Pipeline, and the National Logistics Policy are expected to enhance long-term productivity, reduce costs, and create millions of jobs across sectors.

A Vision of a Developed, Future-Ready India

India’s push toward digitalisation, clean energy, and inclusive development highlights a shift toward becoming not just a large economy, but a resilient and sustainable one. As the country balances rapid industrialisation with climate commitments and social progress, the next 15 years could redefine its place in the global economy.

With the right mix of reforms, investments, and innovation, India’s journey to a $10 trillion economy by 2040 looks increasingly achievable.