By 2075, the United States could drop to third place in the ranking of the world’s largest economies. In addition to China, India could also overtake them. This was reported today by CNBC, citing forecasts by investment bank Goldman Sachs. The United States is now the largest economy in the world. China ranks second, while India is only fifth behind Japan and Germany, CNBC reported.
According to a recent report by Goldman Sachs, should benefit in the coming decades not only from a growing population, but also from advances in innovation and technology, higher capital investment and rising labour productivity.
India is making greater strides in innovation and technology than some realise
“India is making greater strides in innovation and technology than some realise. The country has demographic factors on its side, but these will not be the only drivers of GDP growth. Innovation and increasing labour productivity will be important,” the bank’s economist Santanu Sengupta said in the report.
India is expected to replace China as the world’s most populous country this year. “India’s large population clearly presents an opportunity, but the challenge is the productive use of the workforce,” Sengupta said. “It means creating opportunities for this workforce while increasing their skills,” he added.
The Indian government is now emphasising on building infrastructure, especially road and rail networks. “We believe this is an opportune time for the private sector to increase capacity in manufacturing and services, which would create new jobs and absorb a large workforce,” Sengupta said.
Source: CTK
