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India To Be World's Top Economic Power By Century-End: CEBR

Utkarsh Classes 28-12-2023
India To Be World's Top Economic Power By Century-End: CEBR Economy 4 min read

The Center for Economics and Business Research (CEBR) said in its recent report that India will become the largest economic superpower by the end of the 21st century. CEBR has said in the report published named 'World Economic League Table Report' that India's Gross Domestic Product (GDP) will be 90 percent larger than China's and 30 percent larger than America’s.

Key Points of the World Economic League Table Report:

  • India will maintain a strong average growth of 6.5 percent from 2024 to 2028.
  • By 2032, it will become the world's third-largest economy, leaving behind Japan and Germany.
  • According to its demographic estimates and projections, after 2080, India will become the world's largest economic superpower, leaving behind China and America.
  • India recorded strong GDP growth of 7.2 percent in 2022-23.
  • CEBR estimates a modest decline in growth to 6.4 percent for 2023-24. As a result, production will be 17.2 percent more than the pre-pandemic level.
  • The CEBR report projects inflation to top out at around 5.5 percent in 2023.
  • According to the report, public sector debt, along with government debt, has created a long-term growth constraint. Its percentage of GDP is expected to reach 81.9 percent in 2023, exceeding the 81 percent recorded in 2022.
  • A recent report by the International Monetary Fund (IMF) also warned that India's general government debt could exceed 100 percent of GDP in the medium term.
  • According to the CEBR report, government borrowing is estimated to be 8.8 percent of GDP in 2023.

Helpful Factors to making India an economic superpower:

  • According to the CEBR report, the following will have a major contribution to accelerating India's economic development:-
    • India's large and young population
    • Rapidly growing middle class
    • Dynamic entrepreneurship 
    • Increasing global economic integration

What needs to be done to make India an economic superpower?

  • India's poverty reduction
  • Eliminate inequality
  • Improvement in human capital
  • Along with development in infrastructure, solutions to environmental challenges will have to be found.

Global investment bank Goldman Sachs estimates:

  • Before the CEBR report, in July 2023, global investment bank Goldman Sachs had said that India could become the world's second-largest economy by 2075.
  • The report says that the Indian economy will take a huge leap and leave the economies of Japan and Germany far behind.
  • However, India will surpass the American economy and become the second-largest economy after China.
  • By 2075, China will be the world's largest economy with $57 trillion.
  • India will be at the second position with $52.5 trillion.
  • The US economy will be the third-largest economy, with a size of $51.5 trillion.

FAQ

Answer:- Center for Economics and Business Research (CEBR)

Answer:- World Economic League Table Report

Answer:- 2032

Answer:- Will maintain an average growth of 6.5 percent from 2024 to 2028.

Answer:- 2075
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