According to the investment bank Goldman Sachs, India could climb a few rungs in the ranking of the world’s largest economies, moving from the current fifth place. It could thus overtake the United States, the euro zone and Japan to become the second largest economy in the world by 2075.
Estimates suggest that India’s gross domestic product (GDP) could reach $52.2 trillion, about 16 times higher than its current level of around $3.1 trillion. This economic growth would propel India to second place in the world, just behind China.
According to Goldman Sachs projections, China will become the world’s largest economy in the coming decades, ending the dominance of the United States which has held this position for many years. Chinese GDP would thus exceed 57,000 billion dollars, more than three times its current level.
In comparison, the American GDP would be 51,500 billion dollars, that of the euro zone 30,300 billion dollars and that of Japan 7,500 billion dollars.
India’s economic surge could begin as early as this year, overtaking Japan and Germany by the end of 2023, according to Morgan Stanley’s 2022 forecast.
This economic growth is supported by a low dependency ratio in India, which means that the number of dependents is proportionally lower than the working age population. This indicates that the Indian labor force has considerable potential to support the young and old.
With a population that has recently become the largest in the world, surpassing China, India has a vast pool of labor. However, it is essential to fully exploit this potential to support the country’s economic growth
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