India set to overtake Germany and Japan to become world’s third-largest economy by 2029: SBI Research
India is likely to become the world’s third-largest economy by 2029, an SBI research paper said on Saturday. India has already overtaken the UK to become the fifth largest economy. The document states that India has undergone a significant structural change since 2014 and is now the 5th largest economy. He said India had overtaken the UK as the 5th largest economy as early as December 2021 itself and not recently.
The research paper further states that India’s share of GDP is now 3.5%, down from 2.6% in 2014 and is expected to surpass 4% in 2027, Germany’s current share of global GDP. . India’s path since 2014 reveals that India is likely to achieve 3rd largest economy status in 2029, a move up 7 places from 2014 when India was ranked 10th, a- he declared.
“India is expected to overtake Germany in 2027 and most likely Japan by 2029 at the current growth rate. This is a remarkable achievement by any measure,” he said.
Referring to the recent GDP growth figure which was 13.5%, the newspaper said India is likely to be the fastest growing economy in the current financial year. “Interestingly, although estimates of India’s GDP growth rate for FY23 currently range from 6.7% to 7.7%, we strongly believe that this does not matter. “significance. In a world wracked by uncertainty, we believe 6-6.5% growth is the new normal,” the paper said.
In the coming days, the document adds, India is expected to be the beneficiary as China slows in terms of new investment intentions. “The recent decision by Apple, a global tech giant, to transfer part of the production of its flagship iPhone 14 model for global shipment from India, with a negligible lag of a few weeks after its launch scheduled for September 7, shows such optimism,” he said. . Apple’s move, the paper said, should open the floodgates for other major conglomerates to follow suit.
According to the report, widespread growth in empowerment will also raise India’s per capita income from current levels, which could also act as a force multiplier.