According to RBI deputy governor Mr. Michael Patra, India will match Germany's GDP (just over US$ 4 trillion as of 2021) and become the fourth-largest economy by 2025-26, and by 2027, India would surpass Japan (almost US$ 5 trillion GDP) and become the third-largest economy.
According to him, India already the world's fifth-largest economy, ahead of the United Kingdom (approximately US$ 3. 2 trillion GDP) and is a global growth engine, contributing the second most to the global growth in 2022. The German economy is predicted to contract by 0.3% in 2023, according to the IMF World Economic Outlook. The global agency expects India's GDP to increase at 6.9% in FY24, with tight monetary conditions limiting growth to 6.1%.
Banks, according to him will play a vital part in this shift. He stated that the number of deposit accounts per thousand inhabitants has climbed from 43 in 1972 to over 1,600 today and the share of smaller loans which is up to Rs. 10 crore (US$ 1.21 million) now accounts for 60% of overall loans, up from 45% in 2014.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.