The Indian economy is expected to overtake the United States as the third largest by 2027 alone, according to SBI economists, the largest lender in the nation.

According to SBI experts, India’s real GDP will rise at a rate of above 6.5% in FY24, supporting Prime Minister Narendra Modi’s optimism about winning a third term and overtaking the United States as the third-largest economy by 2029.

Based on real GDP data as of March 2023, the experts at SBI believe that given India’s success since 2014, it is projected to overtake the United States as the third-largest economy in 2027. This would be two years earlier than the prior prediction of 2029 and a major improvement from its 10th position in 2014.

The RBI also projects that real GDP will increase at a rate of 6.5%, one of the highest projections among economists. India is currently the fifth largest economy in the world.

The SBI reports that the GDP is expected to increase by 8.1% in the first quarter of FY24, guaranteeing that the overall expansion would be greater than 6.5%. The paper asserts that a growth rate of 6.5 to 7% is currently regarded as the country’s new average.

The state-owned lender’s experts refer to the current economic situation as a “sustained goldilocks” period and think that India surpassing the United States to become the third-largest economy would be a spectacular accomplishment by any measure.

The size of the economy is predicted to expand by USD 1.8 trillion between 2022 and 2027, exceeding the size of the Australian economy at the time.

According to their forecast, India would account for 4% of global GDP by 2027 and its economy will grow by 0.75 trillion dollars per two years.

Due to its high GDP growth, India is expected to have a USD 20 trillion economy by 2047, when it would be celebrating its 100th year of independence.

In accordance with a report, India will see a compound annual growth rate of 8.4% if it achieves nominal growth rates of 11–11.5% or real growth rates of 6.5–7% annually. According to the research, achieving such a growth rate is very likely.

By 2027, the Gross State Domestic Product (GSDP) of Maharashtra and Uttar Pradesh, respectively, is expected to exceed USD 500 billion, according to the analysis.

Additionally, it describes the Yogi Adityanath-led state of Uttar Pradesh as the “land of the midnight sun,” emphasizing its growth potential.

The paper focuses on the long-term economic advantages that Prime Minister Modi’s recent trips to the US and France will bring to India.

These advantages include advancements in chip production, defense cooperation, climate change and finance, trade dispute settlement, and creation of special economic zones.

Topics #Economy #GDP #India #SBI