India to Overtake Germany as World’s third Largest Economy Within 2 Years, Says Piyush Goyal

New Delhi: India is on track to surpass Germany and become the world’s third-largest economy within the next two years, Union Minister of Commerce and Industry Piyush Goyal said on Saturday. He made the remarks while addressing the Plenary Session of the India–Brazil Business Forum in New Delhi.

Goyal stated that India is currently the world’s fastest-growing major economy, with real GDP growth in the second quarter exceeding 8 per cent. He said this growth reflects structural transformation since 2014, driven by reforms in taxation, logistics, manufacturing, digital infrastructure, compliance reduction and ease of doing business.

The Minister highlighted India’s emergence as a trusted and reliable destination for global business and investment, stating that the country attracted nearly 80 billion US Dollar in foreign direct investment in financial year 2025, the highest ever in a single year.

On trade, Goyal said India has recently concluded a series of high-quality Free Trade Agreements and is actively negotiating several more. With these agreements, India now enjoys preferential access to nearly two-thirds of global trade.

He informed that terms of reference have been finalised with Israel and the Gulf Cooperation Council (GCC), discussions have been launched with Canada, and negotiations are expected to commence in the near future.

He also underlined the importance of the MERCOSUR region, stating that India is working to expand the India–MERCOSUR Preferential Trade Agreement to enhance market access, promote investments, foster technology partnerships and strengthen engagement in sports, education and culture.

He further noted that India actively promotes outward investment and that Free Trade Agreements will play a critical role in enabling Indian industry to expand both domestically and internationally.

Referring to the India–Brazil bilateral relationship specifically, Goyal noted that Brazil is India’s largest trading partner in the Latin America and Caribbean region, with bilateral trade growing 25 per cent in the past year to reach USD 15 billion.

Despite this growth, he described the current level as suboptimal and called for greater ambition. He said both nations can grow faster, grow bigger and grow together for shared prosperity, citing higher benchmarks set by Prime Minister Narendra Modi and President Luiz Inácio Lula da Silva, who had agreed to deepen the India-Brazil strategic partnership during Prime Minister Modi’s State Visit to Brazil in July 2025.

Describing Brazil’s strengths, Goyal referred to its rich natural resources including niobium, lithium and iron ore which are vital for the global energy transition and emerging technologies.

Minister also reiterated Brazil’s strengths in agriculture, aerospace, automotive and digital technologies as areas of significant collaboration, stating that India and Brazil together have the potential to reshape global value chains through resources, innovation and a forward-looking vision.

Piyush Goyal invited Brazilian companies to partner with India in co-creating jobs, adding value and leveraging technology.

Last but not the least, Minister also emphasised the broader dimensions of the partnership, including South-South cooperation and collaboration under BRICS, IBSA, the G20 and the World Trade Organization (WTO).