India To Emerge As 3rd Largest Economy Of World By 2029: SBI Report

Key Observations of the Report:

• A State Bank of India report said India will surpass Germany in 2027 and most likely Japan by 2029 at the current rate of growth. The report said that the country has undergone a large structural shift since 2014 and is now the 5th largest economy overtaking the United Kingdom.

• The path taken by India since 2014 reveals India is likely to get the tag of 3rd largest economy in 2029, a movement of 7 places upwards since 2014 when India was ranked 10th, according to a research report from the State Bank of India's Economic Research Department. India should surpass Germany in 2027 and most likely Japan by 2029 at the current rate of growth.

• India's GDP growth in Q1 FY23 was 13.5 per cent. At this rate, India is likely to be the fastest growing economy in the current fiscal. 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 noted.

• The share of India's GDP is now at 3.5 per cent, as against 2.6 per cent in 2014 and is likely to cross 4 per cent in 2027, the current share of Germany in global GDP.

• The report predicted that India will soon be the beneficiary as China slows down in terms of new investment intentions. "Global tech major Apple's recent decision to shift part production of its flagship iPhone 14 model for worldwide shipping from India bears testimony to such optimism! The move by Apple, the most recognisable face of tech-infused innovation in the last two centuries, that captures aspirations of an upwardly mobile population should open the floodgates for other major conglomerates to follow suit," the report added.

• At the beginning of the 21st century, China embarked on an accelerated growth path occupying the second largest economy tag. So if India continues to adopt the right policy perspective and a realignment in global geopolitics, the current estimates might even undergo an upward revision, the SBI report noted.