New Delhi, Aug. 28 -- Global professional services firm, Ernst & Young (EY), estimated in its recent EY Economy Watch for August 2025 that India will become the world's second-largest economy in terms of purchasing power parity (PPP) by 2038.

India is also expected to have a gross domestic product (GDP) of $34.2 trillion despite the economic headwinds from the heavy tariffs imposed by the United States and President Donald Trump.

"India combines youthful demographics, rising domestic demand, and a sustainable fiscal outlook, giving it the most favourable long-term growth trajectory," according to the research report.

PPP is also known as Purchasing Power Parity, a macroeconomic metric that serves as a comparison indicator between two n...