Goldman Sachs reports India is on track to outperform Japan, Germany, and the U.S. to secure the position as the world’s second-largest economy by 2075.
At present, India stands as the world’s fifth-largest economy, following Germany, Japan, China, and the U.S.
It is not just the growth of India’s population that contributes to this projection but also advancements in technology and innovation, increased capital investments, and enhanced worker productivity, as highlighted in the investment bank’s recent report.
In the upcoming twenty years, India’s dependency ratio will stand to be one of the least compared to other regional economies, stated Santanu Sengupta, India economist at Goldman Sachs Research.
The dependency ratio of a nation quantifies the number of dependents to its total working-age populace. A low dependency ratio signals a higher proportion of working-age adults capable of supporting both the young and old.
Sengupta further stated that to enhance the potential of India’s rapidly expanding populace, it is imperative to bolster its labor force participation. Sengupta further predicted that for the forthcoming two decades, India’s dependency ratio would be one of the smallest among major economies.
India’s administration is prioritizing infrastructure development, focusing particularly on road and railway construction. The nation’s latest budget is geared towards maintaining the interest-free loan programs spanning 50-years to regional governments, to stimulate infrastructure investments.
Goldman Sachs argues that the current climate is ideal for private businesses to expand on their manufacturing and services capacity. This strategy is seen as crucial to creating more job opportunities and accommodating an expanding workforce.
[sourcelink link=”https://www.cnbc.com/2023/07/10/india-to-become-worlds-second-largest-economy-by-2075-goldman-sachs.html”]
