India may surpass Germany, Japan to become the third largest economy by 2029: Report
Written By Abhinav Singh
Published: Sep 03, 2022, 03:02 IST | Updated: Sep 03, 2022, 03:02 IST
Indian economy
A report authored by State Bank of India's (SBI) chief economic adviser Soumya Kanti Ghosh has stated that India is likely to become the third largest economy by 2029, largely due to the structural shift since 2014.
Reportedly, the study asserted that India will likely surpass Germany in 2027 and Japan in 2029 to move atop the table if the current rate of growth is maintained.
When Prime Minister Narendra Modi and his government took charge in 2014, India was in the 10th spot. If the report's forecast can become a reality, the jump of seven spots within 15 years might just be the legacy of the Modi government.
The report took a measure of India's GDP forecast for FY23 and added that 6 per cent to 6.5 per cent is the new normal.
"Interestingly, even as estimates of India's GDP growth rate for FY23 currently range from 6.7 per cent to 7.7 per cent, we firmly believe that it is immaterial. In a world that is ravaged by uncertainties, we believe 6 per cent to 6.5 per cent growth is the new normal," the report said.
Earlier this week, the National Statistical Office (NSO) revealed data showing that India's GDP expanded at its quickest rate in a year during the April-June quarter.
During the three months that ended on June 30, 2022, India's GDP increased by 13.5 per cent.
Talking about how India can benefit from the growth slump in China, the report added that Apple's recent decision to start manufacturing of its newest arrival iPhone 14 in India was an optimistic step.
"Global tech major Apple's decision to shift part of its production of its flagship iPhone 14 for worldwide shipping from India, with a negligible time lag of a few weeks post its launch on September 7, bears testimony to such an optimism."
As reported by WION, to manufacture its flagship iPhone 14 in India, Apple has already started working with its local suppliers in India to speed up the production pace to cut down the manufacturing time of the new smartphone.
Reportedly, iPhone 13 started manufacturing in India, six-seven months after it was launched last year in September. Apple is attempting to reduce the gap and bring it on par with China.
The SBI report comes in the backdrop of GDP figures released by the International Monetary Fund which stated that India has overtaken the United Kingdom to become the fifth largest economy in the world.
Reportedly, the size of the Indian economy with regards to ‘nominal’ cash was $854.7 billion during the quarter through March on an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter. In contrast, the UK was at $814 billion.
Moreover, the IMF's forecasts show India pegged to overtake the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind just the US, China, Japan and Germany.
(With inputs from agencies)
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