India likely to become second largest economy by 2075: Goldman Sachstext_fields
New Delhi: Leading global investment banking and management firm Goldman Sachs predicted that India will become the world’s second largest economy by 2075 provided that it should utitlise its burgeoning population.
Santanu Sengupta, Goldman Sachs Research's India economist, stressed on to boost training and skilling its labour force.
‘Over the next two decades, the dependency ratio of India will be one of the lowest among regional economies. So that really is the window for India to get it right in terms of setting up manufacturing capacity, continuing to grow services, continuing the growth of infrastructure’, Sengupta was quoted by NDTV as saying.
India, according to him, has the best proportionate ratios of working-age population and number of children and elderly.
Not just the size of population alone is its driving force, he pointed out, adding that ‘India has made more progress in innovation and technology than some may realize’.
‘ 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,’ his report was cited as saying.
Stressing on the positive trends in India’s economy, he said demographics increases India’s saving rates, lowering dependency ratios, and rising incomes. To go with this, a deeper financial sector development could make the pool of capital available for further investment, he said.
The report, however, warned of India's losing big opportunity should it not increase its labour force’s participation in the process.