For A Deal With China; America Will Be Left Behind; India Is Predicted To Advance

Many leading economists have already opined that India’s golden age is ahead. Most of the market observers have pointed out that the progress and boom in the Indian economy during the last decade is evident. A new research report of Goldman Sachs, an American multinational investment bank, has come out to confirm all these. It is predicted that in the next 50 years, the Indian economy will become the second largest in terms of economic progress, leaving behind the United States.

GDP of India

India, the world’s most populous country, can make huge strides if it can match training and workforce participation to its broad and deep skill pool. By 2075, it could overtake the US to become the world’s second largest economy. A Goldman Sachs report suggests that India will grow into a $52.5 trillion economy. Goldman Sachs predicts that America’s GDP will be $51.5 trillion and China’s GDP will be $57 trillion at that time.

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Why advance?

India’s position in the global economy is now at the fifth position. Apart from the US and China, India is ahead of Japan and Germany. But Goldman Sachs concluded that India can make progress with the help of technological advances, a youth ratio in the population and an increase in labor productivity.

Similarly, the report also highlights that India is showing great progress in innovation and technology in recent times. The advantage is that more production can be obtained from each worker. It will also pave the way to boost India’s economy. Capital investment also accelerates growth. Also, a Goldman Sachs research report indicates that India has one of the lowest dependency ratios among leading economies.

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A challenge to face

India needs to focus on labor force integration and increasing the labor force participation rate. But private sector and government focus on infrastructure development is a crucial step and good for the job market. Along with this, increasing the participation of women workers also needs to be considered in the report of Goldman Sachs. The report also indicated that investment and efforts towards digitalization and technological advancement should continue.