InvestorQ : Is it possible that India can become the third largest economy in the world by 2027 as Morgan Stanley predicts?
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Is it possible that India can become the third largest economy in the world by 2027 as Morgan Stanley predicts?

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Rashi Mehra answered.
2 weeks ago
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In a recent report published by Morgan Stanley, the brokerage house had predicted that India could emerge as the third largest economy in the world post 2027; after the US and China. That means, it would be able to beat UK, Germany and Japan along the way over the next 5-10 years and have GDP of more than these countries. Of course, India would be way short of these countries in terms of GDP per capita, but then the growth would be surely decisive for India at a macro level.

However, linear extrapolation is not always as simple as it appears. Back in 1988, Japan was supposed to overtake the US economy in terms of GDP by the year 1999. At that Japan had a GDP of $4.2 trillion and growing at 7.5% while the US had GDP of $5.5 trillion and growing at 3.3%. A full 34 years later, Japan has a GDP of around $5.3 trillion while the US GDP is past $20 trillion. You must remember this example, before making any projection.

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