India will be the second-biggest economy in the world by 2075. It will overtake Germany, Japan, China and the United States of America (USA), investment bank Goldman Sachs reported in its latest forecast.
The report stated the main arguments for this rating are India’s population growth, the country’s advancement in innovation and technology, higher capital investment and increasing worker productivity.
Goldman Sachs analyst Santana Sengupta considers India also has a considerable percentage of the economically active population, which can sustain younger and older fellow citizens.
India must improve labour force participation and therefore take benefit of population growth correctly.
It is indeed an option for India to establish a manufacturing capacity and resume to grow in the services and infrastructure sector, Sengupta counted.
The revenue of the Indian technology industry should increase by 223.7 billion euros by the end of this year, expects the Indian non-governmental trade association Nascom.
The Difference Between Economies in The Region
As stated in a report by Goldman Sachs, domestic demand drives India’s economy, unlike many economies in the region that are dependent on exports, with up to 60 per cent of development largely attributable to domestic consumption and investment.
In the first quarter, India’s gross domestic product (GDP) increased by 6.1 per cent yearly, and economic growth should be 7.2 per cent at the end of this year.
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