logo
Last Updated on September 3, 2024 by Prof. SK Agarwal

India to overtake US as world's second largest economy by 2075: Goldman Sachs Report

India to overtake US as world's second largest economy by 2075: Goldman Sachs Report


India to overtake US as world's second largest economy by 2075: Goldman Sachs Report

India's rise as a global economic powerhouse is on the horizon, with predictions from banking giant Goldman Sachs suggesting that by 2075, India to surpass US and become World’s 2nd largest economy by 2075. As such, India will claim the position as the world's second-largest economy, surpassing the United States, Japan, and Germany. Given the importance of this Goldman Sachs Report, GD Topic that India to overtake US as world's second largest economy is expected to be a hot Topic for MBA Entrance and other entrance exams. In this article, MBAUniverse.com explores the key factors propelling India's remarkable trajectory and highlights the reasons behind this momentous growth.  

Also Read

"Over the next two decades, the dependency ratio of India will be one of the lowest among regional economies," the Goldman Sachs predicts. According to Santanu Sengupta, Goldman Sachs Research’s India economist, innovation, increasing worker productivity and capital investment is also going to be a significant driver of growth going forward. “Yes, the country has demographics on its side, but that’s not going to be the only driver of GDP. Innovation and increasing worker productivity are going to be important for the world’s fifth-biggest economy. In technical terms, that means greater output for each unit of labor and capital in India’s economy," he said. 

Let’s explore the key factors propelling India's remarkable trajectory and highlights the reasons behind this momentous growth.

  1. Favourable Demographics: India's demographic advantage sets it apart on the path to economic prosperity. With a population of 1.4 billion, India's workforce is expected to drive significant economic growth. Its robust working-age population, in comparison to dependents, creates an opportune window for India to optimize manufacturing capabilities, expand the services sector, and sustain infrastructure development.
  2. Embracing Innovation and Technological Advancements: India has made significant progress in innovation and technology, which will play a vital role in its economic growth. While demographics provide an advantage, innovation and increasing worker productivity are crucial for India's ascent. With a focus on enhancing labor force participation and fostering a conducive environment for innovation, India is poised to maximize its potential as the world's fifth-largest economy.
  3. Capital Investment and Financial Sector Development: Capital investment is a significant driver of India's future growth. The nation's rising savings rate, driven by falling dependency ratios, increasing incomes, and deepening financial sector development, creates a robust pool of capital available for driving further investment. With favorable demographics supporting increased savings, India's capital investment is expected to fuel its economic expansion.
  4. Infrastructure Development and Private Sector Participation: India's infrastructure development, led by the current government, is a crucial factor in its economic growth. However, the private sector also plays a pivotal role in scaling up capacities in manufacturing and services. As the country seeks to create jobs and absorb its large labor force, private sector investment is essential for sustaining economic growth and achieving developmental goals.

India's trajectory towards becoming the world's second-largest economy is fueled by several key factors. Favourable demographics, innovative mindset, robust capital investment, and infrastructure development have laid the foundation for India's remarkable growth story. By capitalizing on its demographic advantage, embracing innovation and technology, and fostering private sector participation, India is paving the way for a future of unparalleled economic prosperity. 

As India continues its journey towards economic supremacy, the world is witnessing a transformational shift in global power dynamics. By leveraging its strengths and navigating challenges, India is poised to become an economic powerhouse, shaping the global economic landscape in the decades to come.

As Goldman Sachs predicts India to overtake US as world's second largest economy and given the importance of this prediction, this is expected to be a hot GD Topic for MBA Entrance and other entrance exams. Keep track of this GD topic and do well in your MBA interview. Best of luck! 
 

Also Check Latest Group Discussion GD Topics

Exam 2024 Notification


company-logo

Copyright by © 2025. Designed by Codewraps