The world is constantly changing. For instance, new economic powers have emerged. According to some analysts, India may leapfrog China as the second-largest economy. The country has already surpassed China in terms of population. However, it will take time for India to expand to such an extent. Economists project India to overtake China in 2075.
Goldman Sachs predicts explosive growth of India’s economy. Its GDP is likely to reach $52.5 trillion. The next 20 years will be decisive.
“Over the next two decades, the dependency ratio of India will be one of the lowest among regional economies,” Goldman Sachs Research’s India economist Santanu Sengupta pointed out.
A low dependency ratio means that there are proportionally more working-age people who are able to support the youth and elderly. “So that really is the window for India to get it right in terms of setting up manufacturing capacity, continuing to grow services, continuing the growth of infrastructure,” Sengupta said.
At the same time, the level of labor force participation has declined over the past 15 years. Analysts emphasize that the participation of women in the labor force is significantly lower than that of men. Only 20% of all women of working age in the country are employed.
Nowadays, India is the fifth-largest economy in the world, behind Germany, Japan, China, and the United States.
