Indian Economy: India is emerging as a great power, western countries are betting wisely, know what the expert said
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Indian Economy: Where the economy of the whole world is lying sluggish. At the same time, India is fast emerging as a global economic power. By 2050, India can become the third largest economy in the world. Commenting on this, renowned economist and commentator Martin Wolf said that the Indian economy is definitely poised to become a ‘fast superpower’ and by 2050 its size will be equal to that of America. Leaders of western countries are betting on India after thinking. In an article written in The Financial Times, he said that I believe that by 2050, India will achieve per capita GDP (GDP) can maintain its growth at or around five per cent. With better policies, growth can be higher than this. However, it may also be less.
India will get the benefit of ‘China plus one’ strategy
Martin Wolf 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 competitors. 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 by 2050 the country’s population will reach 1.67 billion. Right now 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 will 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 that US President Joe Biden warmly welcomed Narendra Modi, who was once banned, in Washington. In Paris, Emmanuel Macron also embraced the Indian leader equally warmly. This reflects close ties with a country that could prove to be a powerful rival to China.
‘IMF estimates six percent growth rate’
In his article published in the Financial Times, Martin Wolf said that is this a good bet for the western powers? Yes, definitely India is a fast growing power. There is also harmony in their interests. He also said that the International Monetary Fund (IMF) has projected annual economic growth of just over six percent from 2023 to 2028, with per capita GDP growing at about one percentage point less than that. If there are no major shocks at the global or domestic level, this growth will be equal to the average of the last three decades. It is a young country with potential to improve the quality of its workforce, high savings rates and widespread expectations of greater prosperity.
India will be at par with China by 2050: Wolf
Commenting on India’s per capita GDP, Martin Wolf said that by 2050, India’s per capita GDP (on purchasing power 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 said that India’s population will also be 4.4 times that of American. 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 situation, western leaders are wisely betting on India.
World Bank chief also praised India
Ajay Banga, head of the World BankAjay Banga) has praised the Indian economy fiercely. Along with this, he said that India has a chance to take advantage of China plus one strategy. Ajay Banga said that in the era of global slowdown, India is taking many such steps which are helping to keep it ahead. The country has emerged stronger from the challenges arising during the Covid pandemic. But there is a need to maintain this pace of the Indian economy even further. India is doing a lot in the midst of a global slowdown which is helping to keep it ahead.
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