FX.co ★ India to outpace China as second top global economy

Dramatic changes in the global economy in the last 20 years have revealed new leaders and outsiders. China has rapidly come to the fore. From the outdated economy in the early 2000s, China evolved into the world’s second-largest economy. Over the same time, Russia left the top 3 ranks forever. Nowadays, India has asserted itself as another economic miracle. Experts share the viewpoint that the huge Asian economy could grab the third rank in 5 coming years.

The International Monetary Fund (IMF) has acknowledged India as the fastest-developing economy in the world. IMF analysts project that India’s economic growth could expand by 6.1% in 2023 and expect even faster economic growth of 6.3% in 2024. Besides, investment bank Goldman Sachs is optimistic about India’s long-term outlook. They predict that the country might become the second-largest global economy by 2075 with a national economic output of $52.5 trillion. Interestingly, India’s government sets a less ambitious goal. Prime Minister Narendra Modi pledged that India would enter the world’s top 3 largest economies in the next 5 years. He also confirmed that the government is committed to fighting against poverty and creating the conditions for the population’s well-being.

India had 1,000 years of slavery before 1947 when the country finally freed itself from British colonial rule. “Our decisions will shape India's next 1,000 years of greatness which will ensure economic and social transformation through demography, democracy and diversity,” Premier Modi said on Independence Day.

This scenario is very realistic. There will be enough adult able-bodied population in the country in a few coming decades who will be able to support the youth and senior citizens. In turn, with such a proportion of adults, the economy will ramp up production capacity, expand the service sector, and develop the infrastructure.