India will be $2tn economy by 2014-15

India will be a $2 trillion economy in the next five years as its GDP growth is likely to average at 12% in nominal terms, powered by a huge consumption demand, Enam Securities has said. "India's GDP is likely to grow at (an) average 12% in nominal terms. Hence, India will be a $2-trillion economy by 2014-15," Enam Securities head, research, Nandan Chakraborty and economist Sachchidanand Shukla said in a report titled 'India Strategy' released on Monday. At present, India is a $1-trillion economy. This growth will be led by the huge consumption demand in sectors like FMCG, power, auto (small car hub), IT and pharma, it added. The brokerage firm said insurance companies, financial services and equity markets will flourish as the country's annual savings pool grows to $700 billion from $400 billion at present. "More than half of this ($700 billion) could flow into financial savings. With favourable demographics and average seven per cent real growth, India can sustain more than 30% savings rate akin to the Asian tigers, or China and Japan. This will transform the domestic financial services space," Enam said. Life insurance penetration in India is estimated to reach a level of 4.4% over next two years.