India will become the second largest economy by 2031 and the world’s largest economy by 2060, RBI Deputy Governor Michael D. Patra has said. A news package about it.
At the end of last March, India became a USD 3.6 trillion economy. That means India has become a large economy worth Rs 295.4 lakh crore as per the exchange rate.
India has overcome various challenges in terms of labor productivity, infrastructure, contribution of manufacturing sector to GDP and building an economy for sustainable growth.
Bahadur Shastri National Academy of Administration organized a meeting for Indian Civil Service Officers at Lal Nagar, Mussoorie. Michael D. Patra, Deputy Governor, Reserve Bank of India, spoke on the topic ‘Future-ready India’s Fiscal Policy’.
Speaking at the meeting, he said that India will grow at a growth rate of 9.6 percent per annum in the next ten years, and due to this India will become the second largest developed economy in the world by 2031.
A country is a middle economy country when it has a per capita income of 14,005 USD. A country becomes a developed country when the per capita income becomes USD 34,000.
At the GDP level, it may not be appropriate to compare a country’s economy with that of other countries. Hence the growth of the economy should be assessed with the balance of purchasing power of the larger country.
In terms of purchasing power parity, India is the third largest economy in the world. India’s $5 trillion economy will become $16 trillion by 2027.
According to a report by the Organization for Economic Co-operation and Development (OECD), India is set to become the world’s second largest economy by 2048, overtaking the United States.
India has become an economy of 295.4 lakh crore rupees or 3.6 trillion US dollars at the current exchange rate. That means India is in the group of low middle income countries with a per capita income of 2 lakh 7 thousand 30.
The RBI Deputy Governor stressed that inflation in India should move towards convergence with international inflation so that both the internal and external value of the rupee is protected, and assured that this will pave the way for the internationalization of the rupee and India’s emergence as the world’s economic powerhouse of tomorrow.
