MUMBAI: India can become the world’s second-largest economy in seven years and the largest by 2060, RBI deputy governor Michael Patra said.
“Given the innate strengths and resolve to achieve its aspirational goals, it is possible to imagine India striking out into the next decade to become the second-largest economy in the world not by 2048, but by 2031 and the largest economy of the world by 2060,” said Patra.He was speaking at the Lal Bahadur Shastri National Academy of Administration, Mussoorie, on July 9.
According to Patra, the ‘age of China’ began in the early 1990s, taking it to the position of the second-largest economy in the world. “It is from 2010 that India’s time has come. Several forces are coming together for India to surge ahead and assume its rightful place as a world leader over the next two-three decades,” he said.
Patra said India’s growth will be driven by several key factors. First, investment – historically fuelled by domestic savings – is stabilising and showing signs of acceleration. This is being complemented by a modest current account deficit and manageable external debt. Second, macroeconomic and financial stability, achieved through effective monetary policy and inflation control, underpins growth prospects. The banking sector’s improving health and ongoing fiscal consolidation further enhance stability. Third, India’s favourable demographics, with a young and growing workforce, promise sustained growth.
On internationalisation of the rupee, Patra said there was a need to keep inflation under check and guide it to global levels to achieve this goal.
“Given the innate strengths and resolve to achieve its aspirational goals, it is possible to imagine India striking out into the next decade to become the second-largest economy in the world not by 2048, but by 2031 and the largest economy of the world by 2060,” said Patra.He was speaking at the Lal Bahadur Shastri National Academy of Administration, Mussoorie, on July 9.
According to Patra, the ‘age of China’ began in the early 1990s, taking it to the position of the second-largest economy in the world. “It is from 2010 that India’s time has come. Several forces are coming together for India to surge ahead and assume its rightful place as a world leader over the next two-three decades,” he said.
Patra said India’s growth will be driven by several key factors. First, investment – historically fuelled by domestic savings – is stabilising and showing signs of acceleration. This is being complemented by a modest current account deficit and manageable external debt. Second, macroeconomic and financial stability, achieved through effective monetary policy and inflation control, underpins growth prospects. The banking sector’s improving health and ongoing fiscal consolidation further enhance stability. Third, India’s favourable demographics, with a young and growing workforce, promise sustained growth.
On internationalisation of the rupee, Patra said there was a need to keep inflation under check and guide it to global levels to achieve this goal.
