India to surpass US to become world's 2nd largest economy by 2075: Goldman Sachs
Goldman Sachs in a report on Monday said India, the fifth-largest economy, will become the second largest economy in the world by 2075 surpassing not only Japan and Germany but also the United States. According to the investment bank report the innovation and technology, higher capital investment and rising worker productivity to increase drastically due to the burgeoning population of the country. Currently, India is the world’s fifth-largest economy, behind Germany, Japan, China and the US.
"Over the next two decades, the dependency ratio of India will be one of the lowest among regional economies," CNN quoted Santanu Sengupta, Goldman Sachs Research's India economist, as saying. Sengupta added that the key to drawing out the potential of India's rapidly growing population is boosting participation within its labour force. Sengupta also forecasts that India will have one of the lowest dependency ratios among large economies for the net 20 years.
“So that really is the window for India to get it right in terms of setting up manufacturing capacity, continuing to grow services, continuing the growth of infrastructure," Sengupta said. The Goldman Sachs report said the India’s government has placed a priority on infrastructure creation, especially in the setting up of roads and railways. The country’s recent budget aims to continue the 50-year interest free loan programs to state governments in order to spur investments in infrastructure.
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