• Goldman Sachs recently reported that India will become the world’s second-largest economy by 2075.
• India currently stands at 5th position in the global market and has to overtake US, Germany, Japan and China to reach 2nd position.
• The report highlights several factors such as favourable demographics, innovation & technology, rising worker productivity, economic reforms etc., that can help India achieve this feat.
India Set To Become The World’s Second-Largest Economy By 2075
In a recent report, banking giant Goldman Sachs announced that India will emerge as the world’s second-largest economy by 2075.
Current Position of Indian Economy
Currently, India is the fifth-largest economy in the world below the US, China, Japan & Germany. Last December, investment bank Morgan Stanley announced that India would surpass Japan and Germany to become the world’s third-largest economy by 2027.
Projected Economic Growth According To Goldman Sachs Report
According to Goldman Sachs , India’s economy will cross the $52 trillion mark to consolidate its position at second place below neighbor China. Santanu Sengupta from Goldman Sachs Research stated that due to low dependency ratio over two decades period and other initiatives such as setting up manufacturing capacity , growing services sector and infrastructure development; Indian Economy can rise.
Factors Contributing To Indian Economic Growth
Goldman Sachs identified several factors working in favour of India such as favourable demographics , innovation & technology , increased capital investment , rising worker productivity and implementation of progressive policies for fostering entrepreneurship & foreign direct investments .
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 . With all these initiatives taken into consideration , it is expected that there may be an increase in overall GDP growth of Indian economy resulting in its rise from fifth position to second position by 2075.