India will become the second largest economy in the world by 2038! Will give a slap to China
India is moving fast towards becoming an economic superpower in the coming years. The latest report of Global Counseling Company Ernst & Young ‘Ey Economy Watch’ estimates that India can become the second largest economy in the world by 2038. This achievement seems to be possible due to India’s strong economic foundation, youth population and disciplined financial policy.
According to the news of India Today, the report said that if India’s current economic growth continues, then India’s GDP can reach $ 34.2 trillion by 2038 on the basis of purchase power parity. With this figure, India will become the second largest economy in the world, leaving behind China.
After all, why is India doing such a great performance?
In the report of Ernst and Young, some very important reasons have been given behind India’s emerging economic strength. The youth workforce is important in this. This is the biggest strength of India. India’s average age in 2025 will be only 28.8 years. This indicates that India has a huge youth population that can carry forward the economy for decades to come. India’s savings rate ranks second among the major economies of the world. This means that adequate resources are available for capital formation and investment in the country, which are helpful in speeding development.
Another reason is the decreasing government debt. While many countries of the world are struggling with heavy debt burden, India is on a different path. India’s debut-to-GDP ratio is expected to come down from 81% to 75% by 2030 in 2024.
Strong domestic demand
India’s large domestic consumption-based economy protects it to some extent from global fluctuations. Even when global trade is slow, India’s huge domestic market also helps in maintaining economic pace. EY says that India is moving at a stable pace even amidst global uncertainties. The strength of the domestic market and the stability of policy-making is leading India towards long-term development.
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