India’s second largest economy by 2075.. Report

India is poised to become the world’s second largest economy after China by 2075, skipping not only Japan and Germany, but also the United States, says a report by Goldman Sachs.

India is currently the world’s fifth largest economy after Germany, Japan, China and the United States.

The Investment Bank wrote in a recent report that in addition to growing population growth, expectations are driven by the state’s progress in innovation and technology, increased capital investment and increased workers’ productivity.

“Over the next two decades, the government dependence on subsidies in India will be one of the lowest among regional economies,” said Santano Sengopta, an Indian economist at Goldman Sachs Research.

A country’s dependency ratio is measured against the total working-age population. The low dependency ratio indicates that there are relatively more adults of working age who are able to support young people and the elderly.

The key to capturing the potential of India’s rapid population growth was to enhance the participation of its workforce. India is expected to have one of the lowest government dependencies among large economies over the next 20 years.

The Government of India has prioritized the establishment of infrastructure, particularly in the construction of roads and railways. The State’s latest budget aims to continue its 50-year interest-free loan programmes for state governments in order to stimulate investments in infrastructure.

Goldman Sachs believes this is the time for the private sector to expand its manufacturing and service capabilities in order to add more jobs and absorb a large workforce.