Key Takeaways:
- India will emerge as the world’s second-largest economy by 2075.
- The data comes from a recent report by banking giant Goldman Sachs
- Currently, India has the 5th largest economy below the US, China, Japan & Germany
YEREVAN (CoinChapter.com) — In a recent report, Goldman Sachs has projected that India will overtake the United States to emerge as the world’s second-largest economy by 2075. The Asian giant is the fifth-largest economy in the world after overtaking the United Kingdom last year.
However, to take the number 2 spot, India must surpass Germany and Japan, besides the United States. However, it will remain 4.5 trillion short of the top spot, which China is projected to occupy with 57 trillion.
“Over the next two decades, the dependency ratio of India will be one of the lowest among regional economies. So that really is the window for India to get it right in terms of setting up manufacturing capacity, continuing to grow services, continuing the growth of infrastructure,”
Santanu Sengupta, Goldman Sachs Research’s India economist, said in the report.
Last December, investment bank Morgan Stanley announced that India would surpass Japan and Germany to become the world’s third-largest economy by 2027.
India to become a $52.5 trillion economy, according to Goldman Sachs
According to the investment banker, India’s economy will cross the $52 trillion mark to consolidate its position at second place, below neighbor China.
As per the reports, New Delhi has several things that could work in its favor. These include favorable demographics, innovation and technology, increased capital investment, and rising worker productivity.
Moreover, Goldman Sachs identified India’s ongoing economic reforms and policy initiatives as crucial factors behind its projected rise.
The report also hailed the Indian government’s focus on infrastructure development, digitization, and structural reforms as activities that have the potential to unlock India’s economic potential and attract substantial investments.
Moreover, India’s implementation of progressive policies to foster innovation, entrepreneurship, and foreign direct investment has further strengthened the country’s position as an attractive investment destination.
“India has made more progress in innovation and technology than some may realize… Innovation and increasing worker productivity are going to be important for the world’s fifth-biggest economy… On this front, the government has done the heavy-lifting in the recent past,”
the report reads.
India’s GDP is currently at $3.75 trillion.
Last month, India’s Finance Minister Nirmala Sitharaman announced that India’s gross domestic product (GDP) had reached $3.75 trillion. She claimed that this marks a significant growth from approximately $2 trillion in 2014 when the ruling Bharata Janata Party (BJP) came to power.
In the fiscal year 2022-23, ending in March 2023, India’s GDP experienced a growth rate of 7.2%. This figure slightly surpassed the government’s forecast of 7%.
Meanwhile, it is important to note that long-term projections are subject to various uncertainties. Geopolitical developments, technological disruptions, and global economic trends can significantly impact the trajectory of any economy.
