India is well positioned to overtake China as the third-largest economy by 2030 and the second-largest by 2050: Mr. Gautam Adani
- IBEF
- June 28, 2023
In remarks to the shareholders, the Chairman of Adani Group Mr. Gautam Adani, stated that India is well positioned to surpass China as the third-largest economy in the world well before 2030 and to surpass the United States as the second-largest economy by the year 2050. Despite the difficulty of predicting economic cycles, he asserted that India, which currently has the fifth-largest economy in the world, will overtake the United States as the third-largest economy long before 2030. He applauded the government reforms and implementation of several structural reforms that have shown an impact on the economy.
He further stated that this stability coupled with India’s young demographics and continued expansion of internal demand is a potent combination. Our nation’s demographic dividend is expected to drive consumption and accelerate the growth of a tax-paying society at a record pace over the next three decades. The United Nations Population Fund (UNFPA) predicts that India's median age would only be 38 even in 2050. While he predicted that India's population would increase by approximately 15% to 1.6 billion people, its per capita income would increase by more than 700% to about US$ 16,000. This per capita metric will be three to four times higher when measured using purchasing power parity. As our growth is primarily driven by domestic demand, the growth of this consuming middle class is expected to insulate us to some extent from global recessions.
Mr. Gautam Adani also expressed that this would drive a surge in private and government expenditures as well as attract more foreign direct investments. He further added that within the next decade, India will start adding US$ 1 trillion to its gross domestic product (GDP) every 18 months and thereby will keep the country on track to be US$ 25-30 trillion economy by 2050.
During the fiscal year 2022-23, Adani Group reported revenues of US$ 16.85 billion (Rs. 1,38,175 crore) and profits after taxes of US$ 0.30 billion (Rs. 2,473 crore). The company has a net worth of US$ 462.16 billion (Rs. 37,890 billion).
The Managing Director, Adani Group, Mr. Rajesh S. Adani stated that FY23 continued to validate Adani Enterprises Limited’s (AEL) incubation journey strengths. Despite challenges in the external environment – the Russia-Ukraine conflict, rise in interest rates, weakness of the Indian stock markets, global economic slowdown, inflation, and the adverse impact arising from a made-up short seller’s report – AEL reported attractive growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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