India will become the second-largest economy in the world by 2075 and economically surpass not only Japan and Germany but also the United States, according to the latest forecast by Goldman Sachs.
Currently, India is the fifth-largest economy in the world, behind Germany, Japan, China, and the United States. The authors of the forecast believe that population growth, advancements in innovation and technology, increased capital investments, and rising worker productivity will be crucial for India’s rise to the second position, behind China.
The report states that India has a significant percentage of economically active population capable of supporting both younger and older citizens, but it must leverage population growth effectively.
It is also expected that the revenue of the Indian technology industry will increase by 223.7 billion euros by the end of 2023.
According to the Goldman Sachs report, India’s economy is driven by domestic demand, unlike many economies in the region that rely more on exports. Up to 60 percent of the growth can be attributed to domestic consumption and investments.