India on Track to Become World’s Third-Largest Economy in Next Two Years, Predicts Sanjeev Sanyal

Sanjeev Sanyal Predicts Investments Will Lead India to Become Third-Largest Economy

Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister of India, predicts that India will become the world’s third-largest economy in the next two years. He explains that growth in recent years has been primarily driven by investments, both from the government and the private sector. Sanyal believes that to sustain high growth rates over the next 25 years, investment will continue to be a key factor, surpassing consumption as the main driving force.

During the quarter ended in December, India’s economic growth rate reached 8.4%, outperforming expectations and marking the highest growth rate in the past six three-month periods. As a result, the GDP growth for the year ending in March 2024 has been revised upwards to 7.6%. Sanyal attributes this strong momentum to the country’s ability to maintain growth without causing macroeconomic stresses, suggesting that India’s sovereign ratings should be higher than they currently are.

Despite a significant gap between the gross domestic product (GDP) and gross value added (GVA) growth rates during the third quarter, Sanyal is not overly concerned, stating that the government’s focus remains on sustaining economic growth. The Finance Ministry has projected India to become

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