INDIA To Be 3rd Largest Economy By The End Of The Decade
India To Be 3rd Largest Economy By The End Of The Decade
With India overtaking the United Kingdom (UK) to become the world's fifth-largest economy, a State Bank of India (SBI) report forecasts that the country will overtake two other major economies by the end of this decade.
The SBI Economic Research Department forecast that India will overtake Germany by 2027 and most likely Japan by 2029 at the current growth rate, making it the third-largest national economy in the world, a move up 7 places from 2014 when India ranked 10th. This is a remarkable achievement by any measure, says the report, authored by Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.
For the first quarter of the fiscal year 2022–23, India recorded a GDP growth of 13.5%.
The report states that at this rate, India is likely to be the fastest-growing economy in the current fiscal year.
"Interestingly, even with an estimate of India's GDP While the FY23 growth rate is currently fluctuating between 6.7% and 7.7%, we strongly believe that is irrelevant. In a world plagued by uncertainty, we believe that the range is between 6% and 6.5% growth is the new normal," the report said.
In addition, the report suggested India's IIP (Industrial Production Index) basket, which currently consists of 2021. Citing an example, the SBI report said the current IIP basket does not include mobile phone exports, which are now manufactured by companies like Foxconn in India. which are not part of the IIP sample.
The report predicted that India will soon be the beneficiary as China slows in terms of new investment intentions.
"The recent decision by Apple, the global tech giant, to shift part of the production of its flagship iPhone 14 model out of India for worldwide shipments, is a testimony to such optimism! A population with increasing mobility should open the floodgates for other major conglomerates to follow suit," the report adds.
At the beginning of the 21st century, China embarked on a path of accelerated growth, occupying the second-largest economy. So, if India continues to adopt the right political perspective and a realignment in global geopolitics, the current estimates could even see an upward revision, the SBI report noted.
India To Be 3rd Largest Economy By The End Of The Decade
With India overtaking the United Kingdom (UK) to become the world's fifth-largest economy, a State Bank of India (SBI) report forecasts that the country will overtake two other major economies by the end of this decade.
The SBI Economic Research Department forecast that India will overtake Germany by 2027 and most likely Japan by 2029 at the current growth rate, making it the third-largest national economy in the world, a move up 7 places from 2014 when India ranked 10th. This is a remarkable achievement by any measure, says the report, authored by Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.
For the first quarter of the fiscal year 2022–23, India recorded a GDP growth of 13.5%.
The report states that at this rate, India is likely to be the fastest-growing economy in the current fiscal year.
"Interestingly, even with an estimate of India's GDP While the FY23 growth rate is currently fluctuating between 6.7% and 7.7%, we strongly believe that is irrelevant. In a world plagued by uncertainty, we believe that the range is between 6% and 6.5% growth is the new normal," the report said.
In addition, the report suggested India's IIP (Industrial Production Index) basket, which currently consists of 2021. Citing an example, the SBI report said the current IIP basket does not include mobile phone exports, which are now manufactured by companies like Foxconn in India. which are not part of the IIP sample.
The report predicted that India will soon be the beneficiary as China slows in terms of new investment intentions.
"The recent decision by Apple, the global tech giant, to shift part of the production of its flagship iPhone 14 model out of India for worldwide shipments, is a testimony to such optimism! A population with increasing mobility should open the floodgates for other major conglomerates to follow suit," the report adds.
At the beginning of the 21st century, China embarked on a path of accelerated growth, occupying the second-largest economy. So, if India continues to adopt the right political perspective and a realignment in global geopolitics, the current estimates could even see an upward revision, the SBI report noted.
Comments
Post a Comment