India to become the World’s second largest economy by 2075- Goldman Sachs

The Goldman Sachs Group Inc., a leading global investment banking, securities and investment management firm says India could become the world’s second-largest economy ahead of Japan, Germany and also the U.S.A

According to Goldman Sachs, India is on the path to becoming a global economic giant on the wheels of increasing human population and steady progress in technological innovation.

The investment bank said other factors driving India’s economic fortunes are its progress in technology and innovation, higher capital investment, and increasing labor force and industrial productivity.

The report says the dependency ratio of India in the next two decades will be one of the lowest among regional economies.

“Over the next two decades, the dependency ratio of India will be one of the lowest among regional economies,” Goldman Sachs Research’s India economist, Santanu Sengupta observed.

Sengupta further stated in the report that the potential of India’s rapid population growth will boost participation of the country’s labor force.

Goldman Sachs pointed out that a country’s dependency ratio is measured by the number of dependents against the total working-age population.

According to Goldman Sachs, a low dependency ratio implies there are proportionally more working-age adults to support the youth and elderly.

Santanu Sengupta noted that the trend is an opportunity for India to take advantage by expanding its manufacturing capacity, grow the services industry and continuing the growth of its state infrastructure.

Goldman Sachs indicated that this is an appropriate moment for India’s private sector to increase its capacity in the manufacturing and services sector in order to generate more jobs to absorb the large labor force.

India’s recent budget is directed at continuing the country’s 50-year interest free loan program for state to spearhead national infrastructure especially in the area of roads and railways.

Economic researchers say the country’s growth will also be centered around the IT business management and software products.

Goldman Sachs additionally predicted capital investment as another significant driver of India’s growth.

The country’s technology industry revenue is also expected to hit $245 billion by the end of 2023.

In another development, S&P Global and Morgan Stanley market intelligence and research analysis have also predicted that India is on course to become the third-largest economy by 2030.

By

Eric Gyimah