A report by global consulting firm Ernst & Young (EY) projects that India is on track to become the world's second-largest economy by 2038, overcoming global trade tensions and the threat of U.S. tariffs.

According to the report, India's Gross Domestic Product (GDP), based on Purchasing Power Parity (PPP) and data from the International Monetary Fund (IMF), is expected to reach an impressive $34.2 trillion.

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The analysis suggests that despite the challenges posed by U.S. trade agreements and tariff disputes, India's robust domestic demand and the strength of its young population will insulate its economy from significant negative impacts.

EY's forecast underscores that India's economic ascent will be driven by its young demographic, a high savings rate, and a well-managed debt-to-savings ratio. The IMF has also noted that India ranks second globally in terms of savings rate, a key indicator of its economic stability and future growth potential.

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