Economy: India may displace the UK as the third largest by 2029, says SBI report
New Delhi: India may emerge as the third largest economy by 2029 — up seven places since 2014 when it was ranked 10th, according to a State Bank of India report on Saturday.
They currently rank India as the fifth largest economy.
“The path taken by India since 2014 reveals the country is likely to get the tag of the third largest economy by 2029,” the report said.
The research report from SBI’s Economic Research Department highlighted that Gross Domestic Product (GDP) growth rate for FY23 is estimated between 6.7 and 7.7 percent, but it is normal to have a 6 to 6.5 percent growth because of global uncertainties.
According to a Friday report, India surpassed Britain to become the world’s fifth largest economy. India extended its lead in the first quarter, showing the GDP figures from the International Monetary Fund. But, as per the SBI report, India surpassed the UK as the fifth largest economy as early as December 2021 itself.
“The share of India’s GDP is now at 3.5 percent, as against 2.6 percent in 2014, and is likely to cross 4 percent in 2027, which is the current share of Germany in global GDP,” the report added.
The report explained how the Indian economy may become the beneficiary as China slows down in terms of new investment intentions.
“Global tech major Apple’s decision to shift part of the production of its flagship iPhone 14 for worldwide shipping from India, with a negligible time lag of a few weeks after its launch on September 7, bears testimony to such an optimism,” it added.
However, in terms of GDP per capita, India still lags most economies in the world. According to World Bank data, it had a GDP per capita of USD 2,277 in 2021, whereas the UK had a per capita income of USD 47,334. China’s per capita income was nearly six times India’s at USD 12,556 in 2021.
On August 31, GDP numbers released by the National Statistical Office for the first quarter of FY23 had shown that the Indian economy grew 13.5 percent. The GDP growth rate was lower than the 16.2 percent forecast by the Reserve Bank of India’s Monetary Policy Committee.
The Indian economy had registered a GDP growth of 20.1 percent in Q1FY22, owing to a low base.