India Set to Become the World’s Second-Largest Economy by 2075, Surpassing the US

According to a report by Goldman Sachs analysts, India is projected to surpass the United States and become the world’s second-largest economy by 2075. The report forecasts India’s GDP to reach $52.5 trillion by that time. Meanwhile, China is expected to overtake the US and become the largest economy by the 2030s.

Population and Progress

India’s rapid population growth and advancements in innovation and technology are driving its economic trajectory. The country’s increased capital investment and rising worker productivity contribute significantly to its economic growth. Additionally, India is expected to have one of the lowest dependency ratios among regional economies.

Boosting the Labor Force

Recognizing the importance of a strong labor force, Goldman Sachs Research emphasizes the need to enhance labor force participation in India. The country aims to strengthen manufacturing capacity, foster growth in the services sector, and invest in infrastructure. The government’s focus on infrastructure development, including roads and railways, supports these efforts.

Technology and Investments

India’s progress in technology and innovation, particularly in the thriving IT industry, plays a pivotal role in driving its economic expansion. The report predicts that revenue in the technology sector will increase by $245 billion by the end of 2023. Capital investment is projected to continue playing a crucial role in India’s future growth.

Risks and Challenges

One significant challenge highlighted in the report is the declining labor force participation rate, particularly among women, over the past 15 years. This poses a hurdle to India’s economic progress. Encouraging more women’s participation in formal employment is crucial for sustainable growth.

India’s Domestic Demand

India’s economy is primarily driven by robust domestic demand, with up to 60% of its growth attributed to domestic consumption and investments. Unlike other regional economies, India relies less on exports for its economic expansion.

Other Predictions

Notably, S&P Global and Morgan Stanley also predict that India will become the world’s third-largest economy by 2030. In the first quarter of the current fiscal year, India’s GDP grew by 6.1% year-on-year, surpassing expectations. The projected full-year growth for the fiscal year is estimated to be 7.2%.


India’s economic outlook is promising, with projections indicating that it will surpass the United States and become the world’s second-largest economy by 2075. To ensure sustained progress, addressing challenges such as the declining labor force participation rate and promoting gender inclusivity in employment is essential. With its focus on technology, investments, and strong domestic demand, India is well-positioned for future economic growth and development.

World’s Second-Largest Economy by 2075 – FAQs

Q1: What does the Goldman Sachs report predict about India’s economic future?

Ans: According to the estimate, India would overtake the United States and have the second-largest economy in the world by 2075, with a projected GDP of $52.5 trillion.

Q2: What are the goals for boosting India’s labor force?

Ans: India wants to strengthen the labour force by establishing manufacturing capacity, encouraging the expansion of the services sector, and spending money on infrastructure. These goals are supported by the government’s emphasis on infrastructure development.

Q3: How does India’s domestic demand contribute to its economy?

Ans: Up to 60% of India’s economic growth can be attributed to domestic consumption and investments, which are the main drivers of the country’s strong domestic demand. India’s economy grows less through exports than other regional economies do.


  • Pritipalit

    Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti's expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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