India could be 3rd largest economy by 2026

Indian economy finance

India has the potential to become a $5 trillion economy and the world's third-largest, ahead of most predictions, according to Arvind Panagariya, professor at Columbia University and former vice-chairman of government thinktank Niti Aayog.
Panagariya emphasized, "During the past two decades, India has grown at an annual average rate of 10.2% in current dollars.

At this rate, India's GDP in current dollars will reach $5 trillion in 2026 and $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."
Panagariya made these projections during the 18th CD Deshmukh lecture organised by the RBI. He stressed the need for India to take essential steps to facilitate the growth of its economic units. "To realise its full potential, India must take the steps necessary to help its economic units grow larger. Small habitations, small farms, and small enterprises are intimately linked," he said. Reforms focused on helping enterprises in industry and services expand would not only create job opportunities but also encourage rural-to-urban migration.

Highlighting India's advantageous position, Panagariya said geopolitically, India is emerging as a favoured country by the US and Europe. India also has friendly relations with Japan, South Korea, and Southeast Asian countries and this would lead multinational companies to prioritise India for their future operations, creating greater space for Indian goods and services worldwide.

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