India to Surpass US and Become World’s 2nd Largest Economy by 2075: Goldman Sachs Report

Introduction:

• Goldman Sachs analysts project India to become the world’s second-largest economy by 2075.
• The report suggests India will surpass the US in terms of GDP, reaching $52.5 trillion by 2075.
• China is expected to overtake the US to become the largest economy by the 2030s.

Population and Progress:

• India’s burgeoning population and progress in innovation and technology are driving its economic forecast.
• Higher capital investment and rising worker productivity contribute to India’s economic growth.
• The country’s dependency ratio is expected to be one of the lowest among regional economies.

Daily Current Affairs 2023

Boosting Labor Force:

• Goldman Sachs Research’s India economist emphasizes the need to boost the participation of India’s labor force.
• India aims to set up manufacturing capacity, continue growing services, and invest in infrastructure.
• The government’s focus on infrastructure creation, including roads and railways, supports this goal.

Technology and Investments:

• India’s progress in technology and innovation, particularly in the IT industry, drives economic growth.
• Revenue in India’s technology industry is expected to increase by $245 billion by the end of 2023.
• Capital investment is projected to play a significant role in India’s future growth.

Risks and Challenges:

• The Achilles heel of the projection lies in the labor force participation rate, particularly for women.
• The report highlights a decline in the overall labor force participation rate in India over the last 15 years.
• Low participation of women in formal employment remains a challenge to India’s economic progress.

India’s Domestic Demand:

• India’s economy is driven by domestic demand, with up to 60% of its growth attributed to domestic consumption and investments.
• The country’s economic growth relies less on exports compared to other economies in the region.

Other Predictions:

• S&P Global and Morgan Stanley also predict that India will become the third-largest economy by 2030.
• India’s first-quarter GDP grew by 6.1% year-on-year, exceeding expectations.
• The full-year growth for the current fiscal year is estimated at 7.2%.

Here’s a table summarizing the key information from the article: