India’s GDP to pip US’ by 2075: Goldman Sachs

New Delhi, April 22

India’s economy is on track to surpass the US by 2075 to become the world’s second-largest after China, according to a Goldman Sachs report.

India’s GDP will rise to $52.5 trillion by 2075, next only to that of China with $57 trillion and leaving behind the US with $51.5 trillion. India’s growth story will be propelled chiefly by its labour force, technological advances and rising capital investment.

At $52 trillion, will be second largest

Advertisement

• India’s GDP will rise to $52.5 trillion by 2075, next only to that of China with $57 trillion and leaving behind the US with $51.5 trillion
• India’s growth will be propelled by its labour force, tech advances and capital investment, says Goldman Sachs

India is currently ranked fifth with GDP of $3.74 billion and has a low per capita income of $2,600 which puts it in the 131st position globally. “India has made more progress in innovation and technology than some may realise. Innovation and increasing worker productivity are going to be important for the world’s fifth-biggest economy. In technical terms, that means greater output for each unit of labour and capital in India’s economy,” noted Santanu Sengupta, Goldman Sachs’s chief India economist.

There are also stumbling blocks in the form of high import duties, red tape, and dominance of domestic tycoons. “India’s savings rate is likely to increase with falling dependency ratios, rising incomes, and deeper financial sector development, which is likely to make the pool of capital available to drive further investment,” said Sengupta.