Economists at the country’s largest lender SBI on Thursday, July 27, advanced their estimate on the Indian economy becoming the third largest in the world by two years to 2027.
In a note that comes a day after Prime Minister Narendra Modi exuded confidence of winning a third term and India galloping to being the third largest till 2029, SBI economists said India’s real GDP will grow at over 6.5% in FY24.
“The path taken by India since 2014 reveals that India is likely to get the tag of the third largest economy in 2027 (or FY28) based on actual GDP data as on March 2023, a movement of 7 places upwards since 2014, when India was ranked 10th and two years earlier than our previous forecast of 2029,” the economists said in the note.
The RBI estimates the real GDP to grow at 6.5%, which is one of the highest estimates by any watchers. At present, India is the fifth largest economy in the world.
The SBI report said the GDP will grow at 8.1% in the first quarter of FY24, which ensures that the overall expansion surpasses 6.5%. It also added that growing at 6.5-7% is the new normal for the country.
Stating that the economy is in a “sustained goldilocks” period, the economists said becoming the third largest economy will be a “remarkable achievement by any standards” for India. Source: PTI