India Could Rise to Become World’s Second Largest Economy by 2075: Goldman Sachs
11 July, 2023 | Anamika Singh Parihar
According to the report of global investment bank Goldman Sachs, India is likely to become the world’s second-largest economy by 2075 with an estimated GDP of $52.2 trillion, surpassing the GDP of ...
According to the report of global investment bank Goldman Sachs, India is likely to become the world’s second-largest economy by 2075 with an estimated GDP of $52.2 trillion, surpassing the GDP of many largest economies like the United States, Japan, and Germany. China is estimated to have the highest GDP of $57 trillion by 2075. United States is expected to be the third-largest economy with a GDP of $51.5 trillion.
Goldman Sachs Research’s India economist Santanu Sengupta said, “The dependency ratio of India will be one of the lowest among the regional economies over the next few decades”. India is currently 5th largest economy behind China, the United States, Japan, and Germany holding first, second, third, and fourth, positions consecutively. This is considered a very impressive trajectory for India’s growth prospects.
According to the reports of Goldman Sachs, various factors have been on the fore which can play a major role in elevating India’s GDP. Santanu Dasgupta has also mentioned some key crucial factors that could help India to become the second-biggest economy by 2075.
Key Factors that will help in the economic of India
Demographics of India
As India has now become the world’s most populated country with a population of 1.4 billion people. The young working population of India will play a very significant role in enhancing the GDP of the country. A growing population will also help in boosting labor participation in the economy of the country.
The non-working age population who are dependent on the working-age population will also go to decrease as Santanu Dasgupta said the dependency rate of India will be one of the lowest in the next few decades. So this will make India’s demographic more favorable to the economy.
Innovation and Technology
Throughout the years India has made significant progress in technology and innovation. Indian government allocated a budget of Rs.16,361.42 Crore in Science and Technology this year which is nominally 15% higher than the previous year’s budget.
The productivity of Indian workers has been continuously increasing which shows India’s increasing Potential in technology and innovation. India is going to launch Chandrayaan-3 later this week which is evidence of India’s continuous growth in innovation and technological front.
the infrastructural development has also contributed to the growth of India’s economy. And, under the current government, India has witnessed remarkable progress in the development of the infrastructure. Now India has the opportunity to scale its manufacturing activity.
Various Foreign companies are seeing India as the best and most favorable spot for manufacturing. And they are shifting their business from China to India and some other Southeast Asian countries.
So this new prediction will be huge motivation for the people of India to contribute to their economy and help in its growth.