India to become world’s 2nd-largest economy by 2038: EY
In a recent report, EY has made a significant prediction about the future of the Indian economy. According to the report, India is expected to become the world’s second-largest economy in terms of purchasing power parity (PPP) by 2038. This is a remarkable projection, especially considering the country’s current position in the global economy.
The report suggests that India’s Gross Domestic Product (GDP) is expected to reach a staggering $34.2 trillion by 2038, based on International Monetary Fund (IMF) projections. This would put India just behind the United States, which is expected to remain the world’s largest economy during this period.
The report highlights several factors that are expected to contribute to India’s economic growth. One of the primary factors is the country’s young demographic. India has a large and young population, with over 65% of its citizens below the age of 35. This demographic dividend is expected to drive growth and provide a significant boost to the economy.
Another factor that is expected to contribute to India’s growth is the rise in domestic demand. As the country’s middle class continues to expand, there is likely to be an increase in consumer spending, which will drive growth and create new opportunities for businesses.
Despite the optimism surrounding India’s economic prospects, the report also notes that the country will face several challenges in the years ahead. One of the primary challenges will be to address the issue of income inequality, which has been a persistent problem in India. The report suggests that the government will need to implement policies to reduce income inequality and ensure that the benefits of growth are shared by all segments of society.
Another challenge that India will face is the need to improve its infrastructure. The country’s infrastructure, including its transportation networks and energy systems, will need to be upgraded to support its growing economy. The report suggests that the government will need to invest heavily in infrastructure development to ensure that the country is well-positioned for future growth.
The report also notes that India will need to address the issue of corruption, which has been a significant challenge for the country in the past. Corruption can stifle economic growth by creating an environment that is hostile to businesses and investment. The report suggests that the government will need to take steps to reduce corruption and create a more business-friendly environment.
In conclusion, India is expected to become the world’s second-largest economy by 2038, according to EY’s report. The report highlights several factors that are expected to contribute to India’s economic growth, including its young demographic and rising domestic demand. However, the report also notes that the country will face several challenges in the years ahead, including the need to address income inequality, improve infrastructure, and reduce corruption. Despite these challenges, the report suggests that India has the potential to become a major economic power in the years ahead.
Source: https://www.newsbytesapp.com/news/business/ey-has-an-optimistic-projection-for-indian-economy/story
