India is set to become the third largest economy in the world by 2029. A State Bank of India report said India will surpass Germany in 2027 and most likely Japan by 2029 at the current rate of growth. The report said that the country has undergone a large structural shift since 2014 and is now the 5th largest economy overtaking the United Kingdom. The path taken by India since 2014 reveals the country is likely to get the tag of 3rd largest economy in 2029, a movement of 7 places upwards since 2014 when India was ranked 10th, it said.
Bank Maha Pack includes Live Batches, Test Series, Video Lectures & eBooks
About The Report:
The research report from SBI’s Economic Research Department highlighted that Gross Domestic Product (GDP) growth rate for FY23 is estimated between 6.7-7.7 per cent, but it is normal to have a 6-6.5 per cent growth due to global uncertainties. According to a Bloomberg report on Friday, India had surpassed Britain to become the world’s fifth largest economy. India extended its lead in the first quarter, showed the GDP figures from the International Monetary Fund. But, as per the SBI report, India had surpassed the UK as the fifth largest economy as early as December 2021 itself.
Share In The World GDP:
“The share of India’s GDP is now at 3.5 per cent, as against 2.6 per cent in 2014, and is likely to cross 4 per cent in 2027, which is the current share of Germany in global GDP,” the report added. The report also mentioned how Indian economy is likely to become the beneficiary as China slows down in terms of new investment intentions. “Global tech major Apple’s decision to shift part of its production of its flagship iPhone 14 for worldwide shipping from India, with a negligible time lag of a few weeks post its launch on September 7, bears testimony to such an optimism,” it added.
About The Per-Capita Income:
However, in terms of GDP per capita, India still lags behind most economies in the world. As per World Bank data it had a GDP per capita of $2,277 in 2021, whereas the UK had a per capita income of $47,334. China’s per capita income was nearly six times India’s at $12,556 in 2021.