New Delhi, July 27 (FN Bureau) State Bank of India’s Economic Research Department’s report, SBI Ecowrap, said that India is likely to get the tag of the world’s third largest economy by FY28. “The path taken by India since 2014 reveals that India is likely to get the tag of the third largest economy in 2027 (or FY28) based on actual GDP data as on March 2023, a movement of seven places upwards since 2014 when India was ranked tenth and two years earlier than our previous forecast of 2029,” the report said. It further said that India should surpass both Japan and Germany in 2027 at the current rate of growth. Interestingly, the incremental increase by India between 2022-2027, is more than the current size of Australia’s economy at $1.8 trillion., the report said.
“At this rate, India is likely to add $0.75 trillion in every 2 years, implying that India is all set to touch $20 trillion by 2047, at least on current numbers. India’s global share in GDP will cross 4 per cent by 2027,” the report mentioned. Additionally, it said that there is an increasing consensus that India’s GDP in Q1FY24 is likely to surpass 8 per cent, thus pushing India’s GDP growth to beyond 6.5 per cent in FY24. “We firmly believe that in a world that is ravaged by uncertainties, 6.5-7.0 per cent growth is the new normal,” the report stated.At least two Indian states, Maharashtra and Uttar Pradesh, will break the $500 billion mark in 2027 (or FY28) when India achieves the third place in global economy. The GDP size of major Indian states in 2027 will be more than the size of some of the Asian and European countries like Vietnam, Norway and so on.
On Wednesday, Prime Minister Narendra Modi expressed confidence that India will be among the top three economies globally if he’s elected to third term in office.Addressing a gathering after inaugurating the revamped ITPO complex at the Pragati Maidan in Delhi on Wednesday, PM Modi said, “In my third term, India will proudly stand as the top three economies with the two other nations…Yeh Modi ki guarantee hai (this is Modi’s guarantee)”.Modi government will complete 10 years in office next May. Modi said that when his government took office in 2014, the Indian economy was at the tenth position and now it is at the fifth position in the world.He said that India will be one of the top three economies in the world in his third term. The next general elections are due in 2024.