GDP of India will surpass that of the US by 2075: Goldman Sachs
According to a Goldman Sachs analysis, India’s GDP is expected to overtake the US by 2075 and overtake China as the second biggest in the world.
By 2075, India’s GDP will reach $52.5 trillion, surpassing the US’s $51.5 trillion and ranking second only to China’s $57 trillion. India’s development narrative will be primarily driven by its workforce, technical advancements, and increased capital inflows.
With a GDP of $3.74 billion, India is now ranked fifth in the world, but its low per capita income of $2,600 places it in 131st place. “Some people may not be aware of how far India has come in terms of innovation and technology. The fifth-largest economy in the world will need to focus on innovation and raising worker productivity. Technically speaking, it implies that India’s economy will produce more for every unit of labor and capital, according to head India economist at Goldman Sachs Santanu Sengupta.
Obstacles include excessive import taxes, bureaucracy, and the predominance of homegrown tycoons. Sengupta predicted that as wages rise, the financial sector develops more deeply, and dependence ratios decline, India’s savings rate would rise and create a larger pool of money that will encourage more investment.
