The Race to the Top: India’s Ambitious Journey to Secure the 3rd Largest Economy Title
SBI Research had predicted that India would emerge as the world’s third-largest economy by 2029. However, recent reports suggest that this milestone could be achieved even earlier, by 2027-28. The ‘Ecowrap’ report by SBI Research indicates that India’s consistent growth rate could propel it to surpass both Japan and Germany in the process. This article delves into the projections made by SBI Research and explores the potential implications of India’s economic rise.
Contents
The Current Status
India is currently ranked third among global economies, showing a remarkable upward movement of seven places since 2014. Notably, the incremental growth expected between 2022 and 2027 is anticipated to exceed the entire size of Australia’s economy, which stands at USD 1.8 trillion.
India’s Impressive Growth Trajectory
The ‘Ecowrap’ report reveals that if India continues to grow at its current pace, it is estimated to add USD 0.75 trillion to its economy every two years. This suggests that India is well on its way to reaching the USD 20 trillion milestone by 2047, based on current figures. Additionally, India’s share in the global GDP is projected to surpass 4 per cent by 2027, indicating its growing significance in the world economy.
State-Wise Economic Advancements
SBI Research forecasts significant growth at the state level as well. It predicts that at least two Indian states, namely Maharashtra and Uttar Pradesh, will achieve an economic output of over USD 500 billion by 2027. This feat will coincide with India’s ascent to the position of the world’s third-largest economy. The economic size of these major Indian states is expected to exceed that of several Asian and European countries, including Vietnam and Norway.
The Road to 2027
India’s impressive journey towards becoming the third-largest economy is not without challenges. While the current growth rate is promising, sustaining this momentum will require continued efforts in various sectors. The report emphasizes the need for strategic policies, investments in key industries, and a robust infrastructure to support the expanding economy.
Conclusion
SBI Research’s ‘Ecowrap’ report paints a positive picture of India’s economic prospects. The country’s remarkable growth trajectory has the potential to elevate it to the rank of the third-largest economy by 2027-28, surpassing Japan and Germany along the way. However, achieving this goal will necessitate unwavering commitment from all stakeholders and prudent management of resources.
