On the episode of Newstrack, Forum President Borge Brende had a discussion with Microsoft Vice-Chairman and President Brad Smith about India’s efforts to become a catalyst in establishing a new global order. Borge Brende mentioned that India will become the world’s third-largest economy in just a few years. He also said that India will surpass Germany and Japan.
As a result, the US and China would form G2 while India would join it as a third member, which is creating a group called G3. Also, it has been anticipated that G3 would become the new reality with the inclusion of the US, China, and India. Furthermore, how can we analyse the prediction that India will become the third-largest economy in the coming years?
So, as per analyses, the growth depends on various factors such as the economic performance of other countries, the development of our workforce, and a sustained increase in domestic consumption. Also, the prediction was made by DK Srivastava, Chief Policy Adviser at EY, that India’s economy could grow by a strong 6.5-7% annually from IMF and domestic estimates.
DK Srivastava also mentioned that India has overcome challenges caused by the Russian-Ukrainian conflict, which has led to supply chain disruptions for many countries. With a real investment rate of 33%, a decreasing current account deficit, and a growing demographic dividend, India has the potential to become a significant economic power. Furthermore, to improve productivity, it is planned to give new technologies such as new jobs and AI tools to the labour force. In addition to a strong GDP, India is also performing well on other economic indicators.