India’s GDP growth in Q1 FY23 was 13.5% and at this rate, India is likely to be the fastest growing economy in the current fiscal, said the report authored by Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI. India’s GDP growth rate for FY23 currently ranges between 6.7% to 7.7%.
India has undergone a large structural shift since 2014 (when it was ranked 10th) and is now the 5th largest economy overtaking the United Kingdom, the report said, adding that India would surpass Germany in 2027 and most likely Japan by 2029 at the current rate of growth.
The report stated that India had surpassed UK as the 5th largest economy as early as December 2021.
The share of India’s GDP is now at 3.5%, as against 2.6% in 2014 and is likely to cross 4% in 2027, the current share of Germany in global GDP.
The report further said that India is likely to be the beneficiary as China slows down in terms of new investment intentions.
“Global tech major Apple’s recent decision to shift part production of its flagship iPhone 14 model for worldwide shipping from India, with a negligible time lag of a few weeks post its slated launch on September 7, bears testimony to such an optimism! The move by Apple, the most recognisable face of tech infused innovation in the last two centuries, that captures aspirations of an upwardly mobile population, should open the flood gates for other major conglomerates to follow suit,” it said.
Broad-based growth of empowerment will also lift India’s per capita income from current levels and this could also as a force multiplier for a better tomorrow.
At the beginning of the 21st century, China embarked on an accelerated growth path occupying the second largest economy tag. We believe, with the right policy perspective and realignment in global geopolitics our current estimates might even undergo an upward revision, SBI report noted.
(With inputs from agencies)
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