India to overtake Japanese economy soon? | Fusion - WeRIndia

India to overtake Japanese economy soon?

India to overtake Japanese economy soon?

Thanks to the many excellent new policies brought about by the government and the new opportunities brought about by constantly improving technology, the economy of India has been growing rapidly in recent years.

Already, India has overtaken both Brazil and Russia to emerge as the second largest economy out of all four BRIC economies (Brazil, Russia, India, and China), behind China, which is the largest of the four.

Now, economic reports are estimating an even more prominent place for India in world markets. According to a Bank of America Merrill Lynch report, India will overtake Japan in nominal GDP in dollar terms by 2028.

If the Indian economy continues to grow at 10% within the next decade, it will be well ahead of Japan’s economy at 1.6%.

Additionally, the American brokerage has predicted that India’s growth in real GDP will be at 7% potential.

However, the report did not state the exact size that the Indian economy will be in 2028, when it would emerge as the third largest economy in the world.

Last year, the country’s economy closed at 2.26 trillion in USD.

There are several factors that should cause the economy to continue rising at this rapid rate within the coming years.

The most prominent factors that should cause India’s economy to consistently grow, to the point of surpassing Japan’s economy, are its dependency ratios, its financial maturity, and its increasing incomes and affordability.

These factors will allow it to stand with the two largest economic giants, America and China.

The report stated that India’s growth is expected to be driven mainly by services, and that the RBI will recoup forex reserves compared to falling import cover.

Thus, India’s growing economy is proving to have an impact not just on the country itself, but on the economy of the entire world.

Image Credit:- “Flags” by generalising  is licensed under CC BY -SA 2.0.

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