India should surpass Germany in 2027 and most likely Japan by 2029 at the current rate of growth. This is a remarkable achievement by any standards, said the report, authored by Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.
India set to become third-largest economy: SBI reportThe Indian economy surpassed that of UK’s to become fifth largest globally as of March 2022-end. At the pace of current growth, India is on track to overtake Germany by the year 2027 and Japan by 2029, according to a research report by State Bank of India (SBI).
The report from the Economic Research Department of the state-owned SBI further states that the economy jumped Indian five places from 2014, when it was ranked number ten.
“India has undergone a large structural shift since 2014 and is now the 5th largest economy. Interestingly, India had surpassed UK as the 5th largest economy as early as December 2021 itself and not recently as is being claimed. The share of India’s GDP is now at 3.5%, as against 2.6% in 2014 and is likely to cross 4% in 2027, the current share of Germany in global GDP!,” says the report authored by Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.
India’s GDP growth in the first quarter of financial year 2022-23 was 13.5%, the increase was aided by a favourable base and growth in farm, services and construction sectors. The economy is projected to be the world’s fastest growing economy in the current fiscal.
“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.