India to become 2nd Largest Economy of World by 2050

Goldman Sachs in its report has quoted that India will emerge the 2nd largest economy throughout the globe.

India will emerge as the 2nd largest economy throughout the world by the year 2050, ahead of US, said Goldman Sachs in a statement that Economics Times published on 24 January 2007 broadening the estimates of the prospects of India in its October ’03 research paper “BRIC’s report”.According to the report productivity growth in India will help the country sustain above 8% growth until the year 2020. The GDP (Gross Domestic Product) of India will exceed France, UK and Italy by the mid of next decade (that is around 2015). It’ll then surpass Japan and Germany and then finally the United States ahead of the year 2050 to become the 2nd largest economy following China. Growth acceleration of India since 2003 has shown a structural upward trend and not a simple cyclical upturn, as per the research arm of Goldman Sach in a global research paper that was released on 22 January 2007. The paper wrote that nearly 50% of the total growth was driven by the productivity growth and will likely continue for next few years as well.Between the years 2007 and 2020, GDP per capita of India is expected to quadruple. The escalating growth rate will signify huge demand here, since the people of India will also use up additionally about 5 times car and 3 times crude oil. The contribution of India to the growth of the global economy will also continue to increase, as per the report.RNCOS report on “India Retail Sector Analysis (2006-2007)” notifies, “The economy of India has shown a healthy growth during 2003-2006. The GDP growth rate of the country almost crossed 9% mark during the year 2006. The retail industry of the country has received a strong boost due to this steady growth in its GDP. There has been a continuous rise in the personal income as well as household consumption in the country. The GDP of India is expected to rise further in the years to come.”This research reports on “India Retail Sector Analysis (2006-2007)” also addresses some interesting issues for today’s global business environment. The key questions answered in this report include: what is the current market size and scope of the organized retail in India; what & where are the growth prospects and issues related to the industry; what are the factors driving growth in this sector; what are the opportunities & challenges faced by retailers in India and so on.

Courtesy: EconomicTimes
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