India is well poised to become the third largest economy by 2029, ahead of Germany and Japan.
“India should surpass Germany in 2027, and most likely Japan by 2029 at its current rate of growth. This is a remarkable achievement by any standards,” the SBI said in its Ecowrap report titled, India Set To Become 3rd Largest Economy By 2029: India Surpassed The Size Of UK Economy In December 2021 Itself.
India’s current gross domestic product (GDP) growth in Q1FY23 was 13.5 per cent. At this rate, India is likely to be the fastest growing economy in the current fiscal, the report said.
It said India has undergone a large structural shift in the last few years and is now the fifth largest economy. India surpassed the UK as the fifth largest economy as early as December 2021 and not recently as is being claimed, it said.
“The share of India’s GDP is now at 3.5 per cent, as against 2.6 per cent in 2014, and is likely to cross 4 per cent in 2027, the current share of Germany in global GDP!” the report added.
India will also benefit given that China is showing signs of gradually slowing down in terms of new investment scenarios.
“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,” it said.
The report said that India should now focus on a broad-based growth of empowerment to lift India’s per capita income from current levels, adding that this would “also act as a force multiplier for a better tomorrow”.
“At the beginning of 21st century, China embarked on an accelerated growth path occupying the second largest economy tag. We believe, that with the right policy perspective and realignment in global geopolitics our current estimates might even undergo an upward revision!” the report further said.