India to account for 12% of global m-cap by 2075; GDP to surpass US

Goldman Sachs has predicted the Indian economy and market will be among the top globally by 2050 and even surpass the US by 2075.

In a report titled, The Path to 2075-Capital Market Size and Opportunity, the US-based investment bank said the growth in Emerging Markets (EM) will continue to outpace that in the developed market, with 7 of the top 10 world economies becoming EMs by 2075.

“We expect EM growth to continue to outstrip DM over the remainder of this decade (3.8 per cent versus 1.8 per cent). In 2050, we project that the world’s five largest economies will be China, the US, India, Indonesia, and Germany. By 2075, China, the US, and India are likely to remain the three largest economies and, with the right policies and institutions, seven of the world’s top ten economies are projected to be EMs,” said Jan Hatzius, chief economist and head – Global Investment Research at Goldman Sachs. Thanks to the superior economic growth, EMs and Indian capital markets are expected to grow in stature over the coming decades.