India to become third-largest economy in a decade: BofA Securities

The demographic dividend, growing financial maturity, and the emergence of mass markets work in favour of India, say BofA economists

Bank of America (BofA) Securities expects India to be the third-largest economy in the world by 2031.  

The economic rise could become a reality by 2028, but the Covid pandemic delayed the pace, BofA Securities economists Indranil Sen Gupta and Aastha Gudwani wrote in a report.  

"It should touch Japan's nominal GDP (in USD) in 2031, if it grows at 9 per cent (and in 2030 if it grows at 10 percent). This assumes an entirely realistic 6 per cent real growth, 5 per cent inflation and 2 per cent depreciation,” the researchers noted.  

The demographic dividend, growing financial maturity,