India is set to become the world’s third-largest economy by 2028 and see its gross domestic product (GDP) double to $10.6 trillion by 2035, a report by Morgan Stanley said on July 23.
The country’s growth will be drive by its states, with three to five states, including Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh and Karnataka expected to reach $ 1 trillion-mark, the financial services firm said.

Morgan Stanley noted that the top three states as of today are Maharashtra, Gujarat and Telangana, with states such as Chhattisgarh, Uttar Pradesh and Madhya Pradesh showing significant improvements in the economic rankings in the previous five years.

Moreover, the report said that in the next few years the country is likely to account for 20 percent of the global growth, driving earnings of major multinational corporations.

In the last bi-monthly monetary policy announcement, the Reserve Bank of India retained its FY26 GDP forecast at 6.5 percent. In the last few years, the Central government has increased its spending on infrastructure, rising to 3.2 percent of the GDP in FY25 over 1.6 percent in FY15.