New Delhi, Aug. 27 -- India may become the world's second-largest economy in purchasing power parity (PPP) terms by 2038, with a projected GDP of USD 34.2 trillion, according to a report by EY. This assertion by the EY is based on IMF projections.

Among the largest economies, India stands out with a median age of 28.8 years in 2025, the second-highest savings rate, and a government debt-to-GDP ratio projected to decline from 81.3 per cent in 2024 to 75.8 per cent by 2030, unlike its peers, where debt levels are rising.

Citing an IMF report, EY said India's economy could reach USD 20.7 trillion (PPP) by 2030. Compared to the US, China, Germany, and Japan, India is uniquely placed, it asserted.

"While China leads in overall size with a p...