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Recently, India beat the UK to become the 5th largest economy globally. Now, a new report has suggested that our economy could be the third largest by 2030!
The research report is published by SBI's Economic Research Department. The report states that India's GDP growth rate for FY23 is estimated to be between 6.7-7.7%, which is in line with the figures projected by Moody's.
It’s evident that India has come a long way from its position as the 10th largest in 2014 to the 5th largest in 2022. The economy reported a robust growth of 13.5% in the April-June quarter as it is seen as one of the fastest growing economies in the world and could be one of the fastest growing economies in the current fiscal.
Moreover, the report has also stated that India defeated the UK as the 5th largest economy in the world by December 2021, not as recently as suggested. India will also stand to benefit from the slowdowns witnessed by China in terms of investment intentions.
“Global tech major Apple’s recent decision to shift part production of its flagship iPhone 14 model for worldwide shipping from India, with a negligible time lag of a few weeks, post its slated launch on September 7, bears testimony to such an optimism!
The move by Apple, the most recognizable face of the tech-infused innovation in the last two centuries, that captures aspirations of an upwardly mobile population, should open the flood gates for other major conglomerates to follow suit,” the report said.
Accordingly, India's GDP contribution, which currently stands at 3.5%, growing from 2.6% in 2014, will grow up to 4% by 2027 when it surpasses Germany and Japan by 2029 to be the third largest by 2029-30.
Interestingly, a similar report was published by IHS Markit early in January 2022 which made similar predictions. It stated that the digital transformation of the Indian business landscape, the emergence of several unicorns in quick succession, and the growing domestic consumer market as major contributors to India's progress.
Furthermore, RBI Deputy Governor Michael Patra and Commerce Secretary BVR Subrahmanyam have said that India could achieve the position of the second largest economy, successfully dethroning China.
“It is possible to imagine India striking out into the next decade with a growth rate of 11%. If this is achieved, India will become the second-largest economy in the world not by 2048 as shown earlier, but by 2031. Even if it does not sustain this pace and slows to 4-5% in 2040-50, it will become the largest economy of the world by 2060,” Mr. Patra said.
Mr. Subrahmanyam, on the other hand, says that India will be the second largest by 2047 when it celebrates its 100th year of Independence.
Article by Aman Agarwal.
This news piece is brought to you in association with Jobaaj.com
