India To Become Third-Largest Economy By 2029, Says SBI Report

The report also said that India should surpass Germany in 2027 and most likely Japan by 2029 at a current rate of growth

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According to a research report released by State Bank of India, India is likely to become the third-largest economy in the world by 2029.

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"The path taken by India since 2014 reveals India is likely to get the tag of 3rd largest economy in 2029, a movement of 7 places upwards since 2014 when India was ranked 10th. India should surpass Germany in 2027 and most likely Japan by 2029 at a current rate of growth. This is remarkable achievement by any standards," the report said.

It is also noted that India's share in world GDP is now at 3.5 per cent, as against 2.6 per cent in 2014, and is likely to cross four per cent in 2027, the current share of Germany in global GDP.

It further said that India is likely to be the beneficiary of the investment slowdown in China. "At the beginning of 21st century, China embarked on an accelerated growth path occupying the second largest economy tag. We believe, with right policy perspective and realignment in global geopolitics our current estimates might even undergo an upward revision," said the SBI report.

The report, authored by Soumya Kanti Ghosh, chief economist at SBI, added that broad-based growth of empowerment will also lift India's per person income and this could act as a force multiplier for a better tomorrow.

As per reports of February 2022, India emerged as the world's fifth largest economy by overtaking the UK. The report noted that, "India's economy is the fifth largest in the world with a GDP of $2.94 trillion, overtaking the UK and France in 2019 to take the fifth spot. The size of the UK economy is $2.83 trillion and that of France is $2.71 trillion."