India poised to surpass Japan and Germany, becoming third-largest economy by 2027: Jefferies

Investment banking firm, Jefferies, predicts that India is set to become the third-largest economy globally by 2027, overtaking both Japan and Germany.

With India’s GDP projected to reach $5 trillion in the next four years and nearly $10 trillion by 2030, the country’s economic ascent is predicted to be strong.

According to media reports, Jefferies highlighted India’s economic growth trajectory, noting its transformation from the ninth-largest economy a decade ago to the fifth-largest today, with a nominal GDP of $3.4 trillion.

Despite facing challenges from major reforms like the implementation of GST, bankruptcy laws, and demonetisation, India’s GDP has continued to expand.

A Hindustan Times report cited Chris Wood of Jefferies who highlighted the impact of fundamental structural reforms under Prime Minister Modi’s leadership.

According to him these reforms have significantly improved India’s macroeconomic indicators, making the country increasingly attractive to foreign investors.

Previously, India’s lack of a compelling top-down narrative hindered foreign investment, but with recent reforms, the country’s macro story is now on par with global standards.