Goldman Sachs predicts that India will surpass Japan, Germany, and the United States, establishing itself as the world’s second-largest economy by 2075. Presently, India ranks fifth globally, trailing behind China, the United States, Japan, and Germany.
Goldman Sachs attributes the country’s rise to a booming population, technological progress, higher capital investment, and increased worker productivity. The research firm’s economist Santanu Sengupta predicts that India will have one of the lowest rates of dependency among regional economies for the next twenty years, indicating that there will be more working-age adults available to support the youth and elderly.
Sengupta stresses the need to expand India’s labor force’s participation to unleash the country’s rapidly growing population’s potential. The report suggests that this is an appropriate time for the private sector to increase manufacturing and services’ capacity to stimulate job creation and absorb the massive labor force.
To this end, India’s government has prioritized infrastructure development, primarily setting up roads and railways, aiming to continue the interest-free loans to state governments for the next 50 years to encourage further investment in infrastructure.
Finally, Goldman Sachs hails India’s progress in technology and innovation as being vital to the country’s economic growth, with the technology industry’s revenue set to increase by $245 billion by the end of 2023, according to Nasscom, India’s non-governmental trade association.
