Mumbai (Maharashtra), September 3: Since 2014, India has undergone a significant structural shift and has surpassed the United Kingdom to become the world's fifth largest economy. At the current rate of growth, India will exceed Germany in 2027 and, most likely, Japan by 2029, according to a research report published by the State Bank of India (SBI).
Interestingly, India overtook the United Kingdom as the world's fifth largest economy in December 2021. According to a research report by the State Bank of India's Economic Research Department, India's path since 2014 indicates that it is likely to be ranked the third largest economy in 2029, a 7-place increase from 2014 when it was rated tenth.
At the current rate of growth, India will exceed Germany in 2027 and, most likely, Japan by 2029. According to the report, authored by Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI, this is a remarkable achievement by any standards.
In the first quarter of FY23, India's GDP increased by 13.5%. At this rate, India will almost certainly be the fastest expanding economy in the current fiscal year. Interestingly, even though predictions of India's GDP growth rate for FY23 range from 6.7% to 7.7%, it is firmly believed that it is insignificant. In an unpredictable environment, we believe 6% to 6.5 percent growth is the new normal, according to the research.
The percentage of India's GDP is already 3.5 percent, up from 2.6 percent in 2014, and is expected to exceed 4% by 2027, matching Germany's current share of global GDP.
India is likely to benefit in the coming days as China slows down in terms of fresh investment intentions. Apple's recent decision to shift part production of its flagship iPhone 14 model for international distribution from India, with a small time lag of a few weeks after its scheduled September 7 introduction, attests to such optimism.
Broad-based empowerment growth will also raise India's per capita income from current levels, potentially acting as a force multiplier for a better tomorrow.
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-PTC News