According to a forecast by investment bank Goldman Sachs, India will overtake the United States as the world’s second largest economy by 2075. The report said that the main downside risk for India’s economic growth would be if the labour force participation rate does not increase.
By India Today Business Desk: India is projected to become the second largest economy in the world by 2075, surpassing Japan, Germany and the United States, investment bank Goldman Sachs said in a report. India is currently the 5th largest economy in the world.
As per the Goldman Sachs report, the factors driving this forecast are favourable demographics, innovation and technology, higher capital investment and rising worker productivity.
“Over the next two decades, the dependency ratio of India will be one of the lowest among regional economies,” the report said.
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.
