India to become world's second largest economy by 2075

A recent projection shows India could surpass the United States in GDP by 2075, which would make it the world’s second largest economy. That is according to the research division of global investment banking giant Goldman Sachs.

Huge strides in technology and innovation combined with one of the largest populations in the world make India an undeniable rising star. Goldman Sachs Research has forecasted that India may reach a GDP of $52.5 trillion by 2075, just below China at the top and surpassing the US to take second place in the world.

“The country has demographics on its side, but that’s not going to be the only driver of GDP. Innovation and increasing worker productivity are going to be important for the world’s fifth-biggest economy. In technical terms, that means greater output for each unit of labor and capital in India’s economy,” said Santanu Sengupta, Chief India Economist at Goldman Sachs.

India can explore great potential in a wide range of sectors including engineering, digital marketing, retail, telecom, tourism, social media commerce, the pharmaceutical industry, and emerging tech like artificial intelligence, among others.

Another area of potential growth is the energy industry, where green hydrogen, for example, is expected to be in huge demand in the coming years, with India potentially winning big.

India’s government recently announced its goal to reach net zero emissions by 2070 and to swap out half of all power production for carbon-free energy sources by 2030. There is also a push from the government for further adoption of electric vehicles.

“Ultimately, transitioning to green energy is a large investment opportunity, but it will take time. In the interim fossil fuels are going to be the majority share in energy needs until India transitions to green energy,” said Sengupta.