India is on track to overtake Germany and claim the title of the world’s third-largest economy within the next two years, according to Commerce and Industry Minister Piyush Goyal. He made the announcement during the Deep Tech Summit in Delhi on Wednesday, describing it as part of the country’s journey to a $5 trillion economy. ETTelecom.com
At present, Germany holds the position as the third-largest economy with a GDP of around $5.01 trillion. Goyal said that India’s digital connectivity, infrastructure development and ease-of-doing-business measures have pushed it closer to this milestone. ETTelecom.com
He pointed out that initiatives such as the “Digital India” programme, Aadhaar-based direct benefit transfers and financial inclusion schemes have widened access to digital infrastructure and strengthened India’s economy. These provide the foundation for India’s leap into a higher economic ranking. ETTelecom.com
Goyal added that the government has committed a corpus of ₹1 lakh crore (approx. US$12 billion) to promote deep-tech innovation, underscoring how India intends to combine its booming tech ecosystem with macroeconomic ambitions. ETTelecom.com
Why this matters
Becoming the third-largest economy is not just symbolic. It signals that India is shifting from a rapidly growing large economy to one of the major global players. This could attract more international investment, strengthen its geopolitical position and create new economic opportunities domestically.
Risks to watch
Despite the optimism, there are headwinds. Global trade tensions, especially rising tariffs and protectionist policies, could slow export growth. India will need to keep its infrastructure, regulatory reforms and investment climate strong to sustain its climb. Goyal’s remarks underscore ambition—but execution will determine whether the target is met.
About the Author
