By Admin 
Indian economy: Due to global uncertainties and American tariffs, there has been a ‘good news’ for India amidst the upheaval. According to an EY report, India can become the second largest economy with an estimated GDP (GDP) of US $ 34.2 trillion in terms of purchasing power equality (PPP) by 2038. Explain that the EY report is based on the estimates of the International Monetary Fund (IMF).
This is India’s biggest strength
The report has also revealed that India’s biggest strength is its population. India’s average age is just 28.8 years in 2025. In terms of savings rate, India is second in the whole world. The government’s debt-GDP ratio is estimated to be reduced from 81.3 percent to 75.8 percent by 2024, while the loan level in its equivalent countries is increasing.
This ratio shows how much debt a country has in comparison to its annual production and how much its ability to repay this loan. This shows the economic condition of a country. An IMF report also claimed that India’s economy can reach US $ 20.7 trillion by 2030.
What is the condition of China, America and Japan?
According to the report, by 2030, China will remain at the forefront of its estimated 42.2 trillion economy on PPP mode. However, China also has two challenges- its growing population and increasing debt pressure.
America remains strong in this matter, but it is also facing 120 percent more debt and slow growth rate than its GDP. The condition of Germany and Japan may be better, but the number of middle -aged people here is more and their dependence on global trade is very high.
In contrast, India has the highest population in India, domestic demand is increasing and there is a balance between GDP-loan, which is most important for its long term growth.
How much will the tariff affect?
America’s 50 percent tariff imposed on India has been implemented since yesterday. It has a penalty of 25 percent baseline tariff and 25 percent for the purchase of crude oil from Russia. Regarding this, EY said, American tariff can affect India’s GDP for about 0.9 percent. However, strong domestic demand, trading partnerships can be carried forward and its effect on GDP can be covered only at 0.1.
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