We often hear that the coming time of the 21st century belongs to Asia, especially India and China. People from all walks of life, including experts in the economy, reiterate this statement tirelessly. You might have also heard such things, but is there any basis behind it? If someone asked you this now, you can confidently say “yes.” The report by American investment bank Goldman Sachs confirms this. According to this report, India will not only surpass Japan and Germany but has now caught up with the United States as well.
The recent report by Goldman Sachs states that by 2075, India will become the world’s second-largest economy, approximately 50 years from now. India’s economy will reach 52.2 trillion dollars, which is 15 times more than the current GDP. The economic survey presented in Parliament in January stated that India’s economy would reach 3.5 trillion dollars by March of this year. According to reports, India has now surpassed this figure.
No competition India is currently the world’s fifth-largest economy.
The country recently surpassed the UK. According to an IMF report, by 2027, India will leave Japan and Germany behind to become the world’s third-largest economy. According to the report, by 2027, Japan will have a GDP of 5.2 trillion dollars and Germany 4.9 trillion dollars. India’s economy will reach 5.4 trillion dollars by that time. After that, only the US and China will be ahead of India. It is estimated that by 2027, China will have a GDP of 26.44 trillion dollars and the US 30.28 trillion dollars. This indicates that India will surpass the US, which is currently far ahead, within the next four decades.
What will be the size of the US-China economy?
According to the Goldman Sachs report, by 2075, when India’s economy reaches 52.5 trillion dollars, the US will slip to the third position with 51.5 trillion dollars. China will become the world’s top economy by that time. It is estimated that China’s GDP will reach 57 trillion dollars.
Why will India progress?
The answer to why India’s growth will be so rapid is also provided in the report. According to the Goldman Sachs research economist Sanatanu Sen Gupta, bringing the increasing population of India into the workforce and providing them with skill training will be a significant step in enhancing the country’s capacity. He says that in the next two decades, India’s dependency ratio will decrease significantly. Bakaul Sen Gupta states that India’s working-age population and the ratio of dependent individuals, such as children and the elderly, is better than many other countries, and this is the window of opportunity for India’s progress. He also mentioned that India can increase manufacturing capacity and continue to progress in the service sector.