India is poised to become the world’s second-largest economy by 2075, leapfrogging not just Japan and Germany, but the US too, says Goldman Sachs, Report informs referring to CNBC.
Currently, India is the world’s fifth-largest economy, behind Germany, Japan, China and the US.
On top of a burgeoning population, driving the forecast is the country’s progress in innovation and technology, higher capital investment and rising worker productivity, the investment bank wrote in a recent report.
India’s economy is driven by domestic demand, unlike many more export-dependent economies in the region, with up to 60% of its growth mainly attributed to domestic consumption and investments, according to Goldman’s report.
S&P Global and Morgan Stanley have also predicted that India is on course to become the third-largest economy by 2030.
India’s first-quarter GDP expanded 6.1% year-on-year, handily beating Reuters’ expectations of 5% growth. The country’s full-year growth is estimated to come in at 7.2%, compared with 9.1% growth in the 2021-2022 fiscal year.