India becoming a ‘big power’ of the world, western countries are making careful bets: Martin Wolf
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“I believe that India can sustain per capita gross domestic product (GDP) growth of five per cent or thereabouts till 2050,” Vulk said in an article in ‘The Financial Times’. With better policies, growth can be even higher. However, it may be less than this.
New Delhi. The Indian economy is definitely poised to become an ‘increasingly big power’ in the world and by 2050 its size will be equal to that of the US. Famous economist and commentator Martin Wolf has said this. Wolf also said that the leaders of western countries are betting on India after thinking. “I believe that India can sustain per capita gross domestic product (GDP) growth of five per cent or thereabouts till 2050,” Vulk said in an article in ‘The Financial Times’. With better policies, growth can be even higher. However, it may be less than this.
He said that India is a prime destination for companies adopting the ‘China plus one’ strategy. Due to the large domestic market, India is in a position of advantage in this regard as compared to other rivals. India is the fifth largest economy in the world. It is the third largest economy in terms of purchasing power. The United Nations estimates that the country’s population will reach 1.67 billion by 2050. Presently the population of India is 1.43 billion. Wolf said that the balance sheet of the country’s banks has improved. Credit growth is also taking a better shape now. He wrote that both the country’s economy and population would grow rapidly in the coming decades.
With this, India will compete with China. India also has good relations with western countries, which is a good thing. Wolf said, “US President Joe Biden warmly welcomed Narendra Modi, who was once banned, in Washington. In Paris, Emmanuel Macron equally warmly embraced the Indian leader. This reflects close ties with a country that could prove to be a powerful rival to China. “He said,” Is this a good bet for the Western powers? Yes, definitely India is a fast rising power. There is harmony in their interests as well.
He also said that the International Monetary Fund (IMF) projected annual economic growth to be just over six percent from 2023 to 2028, with per capita GDP growing at about one percentage point less than that. Wolf said that if there were no major shocks, either globally or domestically, this growth would be equal to the average of the past three decades. He said that India is a young country with potential to improve the quality of its workforce, high savings rate and broad prospects for greater prosperity. Wolf said that by 2050, India’s per capita GDP (on purchasing power parity basis) would be at the same level as that of China today.
Wolf has made this estimate on the basis of India’s annual growth of five percent and America’s 1.4 percent. He added that India’s population would also be 4.4 times that of the US. He said that in such a situation it is not difficult to imagine that the size of the Indian economy will be similar to that of America by 2050. In such a scenario, western leaders are wisely betting on India. Earlier, World Bank President Ajay Banga, who was on a visit to India, said on Wednesday that the Indian economy is strong amid global slowdown due to domestic consumption. This is because India’s GDP is largely dependent on local demand.
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