India will be the third largest economy by 2039

India presents the same economic opportunity as China did at the beginning of its boom phase, and will the third largest economy by 2039, according to Bloomberg. However, the country faces challenges in terms of disruptive forces such as automation, digitisation, climate change, protectionism, and populism.

According to a report released with Bloomberg’s New Economy Drivers & Disrupters Index, while India has favourable demographics and a far-reaching reforms agenda, which has the potential to supercharge growth, there is a barrier to rapid development. “The country is even more exposed to disruptive forces than China, as it is ranked 80th,” the report said.

The report highlights the complex challenges that come with this shift in power from the West to the East. It concludes that new economies are poorly positioned for the disruptive forces. “The ‘catch-up’ process — which has defined the global economy for the last 50 years, with low-income economies narrowing the gap with high income — isn’t over. It will become more complicated,” the report said.

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