The one chart all Indians should see to understand country’s impressive economic growth
India's economic growth is setting a new target for the next 10 years and the world is paying attention. Here's India's growth story in just one chart.
By: FE Online | Updated: November 14, 2017 7:49 PM
India’s economic growth is setting a new target for future and the world is paying attention. India has already emerged as the second largest BRIC economy after China, and is likely to become the third largest economy in the next 10 years, overtaking France, the UK, Germany and Japan in nominal GDP soon, a report by BofA Merrill Lynch Global Research said. “We see India crossing Germany and Japan in nominal GDP in dollar term by 2028. This assumes that the Indian economy grows at 10% (in nominal US GDP) in the next decade, well ahead of Japan’s 1.6%,” the report said.
Meanwhile, Morgan Stanley also said that India is expected to be a $6 trillion economy — the third largest in the world — in the next 10 years, majorly helped by digitisation. Here is India’s economic growth story in just one chart:
As the chart shows, India has already surpassed Canada, Italy, Russia, Brazil and very soon. By leaving Brazil and Russia behind, India has emerged as the second largest BRIC economy after China and is well on track to cross France and Britain to emerge as the world’s fifth largest economy after Germany by 2019, and by 2028, Japan. The report titled, ‘India 2028: The last BRICK in the Wall’, said falling dependency ratios, financial maturity and increasing incomes and affordability are the three key drivers for the country to stand among the large emerging economies.
“…Various structural factors will likely weigh on growth in China, Brazil and Russia. Here we take a big-picture look at India’s prospects. We see three strong growth drivers,” the report co-authored by Indranil Sen Gupta and Aastha Gudwani said.
“First, falling dependency ratios should raise saving and investment rates. Second, financial maturity, due to financial liberalization and inclusion, should continue to lower lending rates structurally. Finally, increasing incomes and affordability will likely underpin the emergence of mass markets, supporting an expected 7% real GDP growth,” the report added.
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