• Sat. Apr 20th, 2024

India Set to Become the World’s Third-Largest Economy in Two Years, Predicts EAC Member Sanjeev Sanyal

BySamantha Johnson

Mar 6, 2024
Sanjeev Sanyal Predicts Investments Will Lead India to Become Third-Largest Economy

India is expected to become the world’s third-largest economy in the next two years, predicts Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister of India. Growth in recent years has been primarily driven by investments, both from the government and the private sector. Sanyal believes that to sustain high growth rates over the next 25 years, investment will continue to be a key factor, surpassing consumption as the main driving force.

During the quarter ended in December, India’s economic growth rate reached 8.4%, outperforming expectations and marking the highest growth rate in the past six three-month periods. As a result, the GDP growth for the year ending in March 2024 has been revised upwards to 7.6%. Sanyal attributes this strong momentum to India’s ability to maintain growth without causing macroeconomic stresses, suggesting that India’s sovereign ratings should be higher than they currently are.

Despite a significant gap between GDP and GVA growth rates during third quarter, Sanyal is not overly concerned stating that government’s focus remains on sustaining economic growth. The Finance Ministry has projected India to become third-largest economy in world with a GDP of $5 trillion within next three years and reaching $7 trillion by 2030 through ongoing reforms.

Global investment firm Jefferies also projects India’s significant contribution to global real GDP growth, expecting it to reach 7.7% by 2028 and forecasting country’s equity markets to reach market capitalization of nearly $10 trillion by 2030. The brokerage predicts that India’s GDP will surpass Japan and Germany to become third-largest economy by 2027 as it continues on its path of growth and development.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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