India can have a $10 trillion economy by end of decade, says WEF president

The Indian economy is on a path of exponential growth and is expected to enter the $10 trillion club by the end of this decade, according to World Economic Forum President Borge Brende.

“I see India as a snowball effect. It starts out small, but once it gets going, it gets bigger and bigger. What India is witnessing now is exponential growth,” he told NDTV’s Vishnu Som 2024 on the sidelines of the World Economic Forum in Davos.

“We expect India to become a $10 trillion economy by the end of this decade if reforms continue and (geopolitical) peace prevails, bureaucracy is tackled and investments are made in research and development and infrastructure.”

The US and China are the only two economies worth more than $10 trillion. India, which has the fifth largest GDP in the world, is currently valued at $3.7 trillion.

Brende said India is capable of growing faster as its economy is service-oriented and the boom in digital services trade in the world is benefiting it. This contrasts with a slowing China, which dominates global trade in goods.

The global scenario regarding geopolitical conflicts has affected growth prospects worldwide, he said. However, he expects the US to avoid recession and China to gain some momentum in the fourth quarter.

Artificial intelligence will impact employment prospects in the short term, but in the longer term economies will benefit from increased productivity and competitiveness, he said.

“In India, AI can replace jobs, but then you can put those people in a position of higher productivity, increase wealth and eliminate poverty,” he said.