Indian economy set to become world’s third biggest by 2030

Indian economy set to become world’s third biggest by 2030

India is set to overtake Japan as Asia’s second-largest economy by 2030 when its GDP is also projected to be bigger than that of Germany and the UK, according to research from IHS Markit.

Its report said that while India currently has the world’s sixth-largest economy, behind the US, China, Japan, Germany and the UK, by the start of the next decade it will be ranked at number three.

It said: “India’s nominal GDP... is forecast to rise from $2.7 trillion in 2021 to $8.4 trillion by 2030,” IHS Markit said. “This rapid pace of economic expansion would result in the size of Indian GDP exceeding Japanese GDP by 2030, making India the second-largest economy in the Asia-Pacific region.”

The long-term outlook for the Indian economy is supported by a number of key growth drivers, the report added. “An important positive factor for India is its large and fast-growing middle class, which is helping to drive consumer spending,” IHS Markit said. It is forecasting that the country’s consumption expenditure will double from $1.5 trillion in 2020 to $3 trillion by 2030.


Covid could ‘impact final GDP numbers’

According to the National Statistical Office (NSO), India’s gross domestic product is expected to grow by 9.2% in the current financial year, following a 7.3% contraction in the previous financial year.

The NSO said in its first advance estimates of economic output released on Friday, amid concerns over the likely impact of a third wave of the Covid pandemic.

The NSO, however, made clear that these were “early projections” that did not factor in actual performance of various indicators as well as measures that may be taken to contain the spread of Covid-19.


Deadline to file tax audits extended

The Indian government has extended the deadline for corporates to file Income Tax returns for the fiscal ended March 2021 until 15 March 2022.

The deadline to file tax audit report and transfer pricing audit report for 2020-21 fiscal too has been extended, until 15 February 2022.

This is the third extension given for filing the income tax return for the 2020-21 fiscal for corporates. The original deadline for filing ITR for corporates was 31 October, and those with transfer pricing transactions was 30 November.

The Central Board of Direct Taxes (CBDT) in a statement said that on consideration of difficulties reported by the taxpayers and other stakeholders due to Covid-19 and in electronic filing of various reports of audit, it has decided to further extend the due dates for filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22 (2020-21 fiscal).