Former Niti Aayog vice chairman Arvind Panagariya has said that India will become the world’s third largest economy by 2026 as its GDP wlll reach to $5 trillion that year.
Panagariya said it is unlikely that the GDP of Germany or Japan will cross the $5 trillion mark in the coming three years.
“Given these estimates, how soon can the Indian GDP cross the GDPs of these two countries?” Panagariya was quoted by PTI as saying at the 18th C D Deshmukh Memorial Lecture titled ‘India at 125: Reclaiming the Lost Glory and Returning the Global Economy to the Old Normal’.
“At this rate, India’s GDP in current dollars will reach USD 5 trillion in 2026 and USD 5.5 trillion in 2027. This means that there are good prospects that India will become the world’s third economy by the end of 2026, sooner than nearly all current predictions,” Panagatiya added.
According to the leading economist, India needs to initiate reforms that will help enterprises in industry and services grow larger that will
To realise its full potential, Panagariya said India must take the steps necessary to help its economic units grow larger that will create job opportunities for the masses, which will, in turn, pave the way for workers to migrate from rural to urban areas.
Panagariya added that such migration will automatically increase land per worker in farming while also bringing more and more of the population to where development is.
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Panagariya”s prediction comes days after the US-India Strategic Partnership Forum chairman John Chambers said India it will continue to track towards becoming the number one economy in the world.
Chambers in a post on X listed his predictions for 2024, which according to him is ‘The Year of Speed, Scale of Change and AI Adoption’. He said that United States and India will become the most strategic partnership in the world, driving global innovation and job creation at an accelerating pace.