India’s economy could become the second largest in the world by 2075

According to the forecasts of the American investment bank Goldman Sachs, by 2075 India’s economy will become the second largest in the world, overtaking not only Japan and Germany, but also the United States, and will come close to China, whose growth rate has recently slowed down. Many of the world’s leading corporations have already begun to move their production from China to India, which significantly stimulates the Indian industry, including high technology. The Russian economy is not mentioned in the Goldman Sachs forecast.

According to the forecasts of the American investment bank Goldman Sachs (GS), India, which in April already overtook China in terms of population, by 2075 will catch up with it in terms of GDP.

According to GS analyst Santanu Sengupta, after 52 years the size of the economy:

1. China will reach $57 trillion,
2. India – $ 52.5 trillion,
3. USA – $51.5 trillion,
4. Eurozone – $ 30.3 trillion,
5. Japan — $7.5 trillion.

Russia is not mentioned in this forecast.

The key factor in realizing the economic potential of India, GS experts see its advantage in the labor force, as well as the cultivation of its own talents. “In the next 20 years, India’s level of dependence will be one of the lowest among regional economies,” Mr. Sengupta believes. “India can use this window of opportunity to increase its production potential, develop the service sector and infrastructure.” Now the economy of this country is the fifth largest in the world after the USA, China, Germany and Japan.

GS notes that India is already showing good results in innovation and technology. Another driver will be solid investment by local businesses and the state.

“Thanks to India’s favorable demographics, economic efficiency is likely to rise along with household income growth and a booming financial sector,” Goldman Sachs said in a forecast. “All this makes capital even more accessible to new investment.”

India’s success in attracting foreign investment, including from the world’s leading technology corporations, has been evident recently. At the beginning of June became knownthat Google is in talks with suppliers to move some of its Pixel smartphone production from China to India. Now it’s like that done or plan to do many other technology companies.

A slowdown in the economy, administrative barriers in China, especially during the COVID-19 pandemic and severe lockdowns, as well as growing geopolitical tensions, have led more and more technology companies to rush to withdraw their production from China. Among them are suppliers from Apple, Samsung, Microsoft, Amazon and many others. So, at the end of 2022, the export of Apple smartphones from India reached $2.5 billion, which is twice as much as a year earlier.

Evgeniy Khvostik