According to investment bank Goldman Sachs, India is on track to become the world’s second-largest economy by 2075, surpassing countries such as Japan, Germany, and the United States. With a population of 1.4 billion people, India’s GDP is projected to expand significantly, reaching an estimated 52.5 trillion dollars, surpassing even the projected GDP of the United States.
Goldman Sachs highlights several factors driving this forecast, including India’s progress in innovation and technology, higher capital investment, and rising worker productivity. The country’s burgeoning population, along with its focus on innovation and productivity, positions India as a promising economic powerhouse in the coming decades.
The report suggests that now is an opportune time for the private sector to scale up its efforts in manufacturing and services, creating more job opportunities and absorbing the large labor force. India’s favorable demographics, a vast pool of talent, and a high working-age population ratio contribute to its potential to become the second-largest economy in the world by 2075.
Furthermore, a study conducted by Invesco Global Sovereign Asset Management reveals that India has become the top choice for sovereign investors among emerging markets, surpassing China. The study cites India’s improved business and political stability, favorable demographics, regulatory initiatives, and a friendly environment for sovereign investors as key factors driving its appeal.
India’s positive image is further enhanced by its regulatory reforms, which have attracted increased foreign corporate investment aimed at both domestic and international demand. The study also highlights India and South Korea as the most attractive destinations for increasing investment exposure.
As India continues to make strides in economic growth, innovation, and investor confidence, the country is poised to play a significant role in shaping the global economy in the decades to come.