There is news of relief for the government, which is constantly criticizing the slow pace of GDP. Global financial services company HSBC has said that within the next 10 years, India can become the world’s third-largest economy. The firm has said that even though the recent reforms have affected the economy, but in the mid-term, the economy can be in a better position.
India’s growth trend is better
The firm said that even though India’s GDP is currently only 3 percent of the global GDP, India’s growth trend is in a better position. If this trend continues, then India will surpass Japan and Germany in the next decade. The firm said in its research report that India is now divided into two parts. It is growing at a slow pace. Then the second will change rapidly.
Previous Referrals Are Not Better
HSBC has said in its report that the last few referrals have negatively impacted India’s economy. Because of this, GDP figures have been affected. It has been said in the report that considering the growth trend, it can be said that within the next 10 years, India is the world’s third-largest economy. Can be made. HSBC has said that for some time the situation of the economy will be a little worrisome due to previous referrals. The firm has suggested that during the mid-term, India should be given the opportunity to demonstrate its hidden potential.
Speed of growth will increase by 2020
It has been estimated in the report that the first part will show up to the financial year 2018 and 2019. This first part of India will show the slow growth rate of GDP and the growth rate of many areas. But in the second part, the situation will improve. According to HSBC, India will catch up with growth after 2020 This part of India will be more attractive and better. HSBC has estimated that India’s growth rate could be 6.5 percent between 2017-18. At the same time, it will reach 7 percent between 2019-20.
Trouble will end till 2019-20
By the year 2019-20, these short-term problems will end and the economy will catch up. The firm has said that we estimate that after this, GST will help in increasing the GDP growth by 40 basis points. In addition, the results of other referrals will also be seen during this period and the pace of growth will increase.