According to State Bank of India (SBI) Research Ecowrap report, India is set to become 3rd largest economy by 2029. The Research Report from the State Bank of India’s Economic Research Department says, “India surpassed the size of UK economy in December 2021 itself.”
The report has been authored by Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India.
Large structural shift since 2014 – since Modi government came to power
The report adds, “Meanwhile, India has undergone a large structural shift since 2014 and is now the 5th largest economy. Interestingly, India had surpassed UK as the 5th largest economy as early as December 2021 itself and not
recently as is being claimed. “
Share of India’s GDP to cross 4% in 2027
“The share of India’s GDP is now at 3.5%, as against 2.6% in 2014 and is likely to cross 4% in 2027, the current share of Germany in global GDP!
Fastest growing economy
“India’s GDP growth in Q1FY23 was 13.5%. At this rate, India is likely to be the fastest growing economy in the current fiscal. Interestingly, even as estimates of India’s GDP growth rate for FY23 currently range from 6.7% to 7.7%, we firmly believe that it is immaterial. In a world that is ravaged by uncertainties, we believe 6% -6.5% growth is the new normal,” says the report.
India: 3rd largest economy in 2029
The path taken by India since 2014 reveals India 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. India should surpass Germany in 2027 and most likely Japan by 2029 at the current rate of growth. This is a remarkable achievement by any standards.
India is likely to be the beneficiary as China slows down
-In coming days India is likely to be the beneficiary as China slows down in terms of new investment intentions. Global tech major Apple’s recent decision to shift part production of its flagship iPhone 14 model for worldwide shipping from India, with a negligible time lag of a few weeks post its slated launch on September 7, bears testimony to such an optimism!
-The move by Apple, the most recognisable face of tech infused innovation in the last two centuries, that captures aspirations of an upwardly mobile population should open the flood gates for other major conglomerates to follow suit.