World Bank Chief Economist Indermit Gill says India has entered a period of peak development potential and is well placed to sustain strong growth for decades….reports Asian Lite News Desk
India is well positioned to maintain robust economic growth over the next two decades and should be viewed as a unique growth story rather than as a successor to China, World Bank Chief Economist Indermit Gill has said.
Speaking during a briefing on the World Bank’s latest Global Economic Prospects report, Gill said India stands out among major economies because of its favourable demographics, relatively low levels of private debt and strong domestic consumption, all of which provide a solid foundation for long term growth.
According to Gill, India has entered a period of what he described as “peak development potential”, giving it a significant advantage at a time when many countries are grappling with ageing populations and weakening productivity growth.
“If you look at India over the next two decades, India has entered its peak development potential,” Gill said.
He noted that while growth prospects in several large economies are expected to moderate in the years ahead, India’s potential growth rate is likely to remain comparatively strong.
“Potential growth rates for India, we estimate to be fairly high for the next two decades,” he said.
Gill highlighted the country’s demographic profile as one of its greatest strengths, noting that India continues to benefit from a young and expanding workforce while many advanced and emerging economies face demographic pressures.
“On the demographic side, India’s demographics work for it,” he said.
The economist also pointed to India’s relatively low private sector debt burden, which he believes offers greater flexibility for investment and economic expansion.
“On the debt side, especially private debt, India has relatively low debt to GDP ratios on the private side,” Gill explained.
Unlike many East Asian economies that relied heavily on exports to drive growth, India is expected to benefit from the strength of its domestic market and consumer spending.
“India’s domestic consumption to GDP ratios are very normal. They’re close to 60 something per cent,” he said.
Gill dismissed comparisons with China, arguing that India’s development path would be shaped by its own economic structure and advantages.
“India’s not going to be the next China, India’s going to be the next India,” he said.
Despite his optimism, Gill cautioned that India must continue addressing several structural challenges if it wants to fully realise its economic potential.
One key area, he said, is greater integration with the global economy.
“India has to become a much more open economy,” Gill said.
He also stressed the importance of attracting more investment, particularly foreign direct investment, to support growth and job creation.
“India could do a lot more to get private investment going again, especially foreign direct investment,” he added.
Gill argued that a combination of business friendly and trade friendly reforms would help maximise India’s opportunities over the coming decades.
The remarks come as the World Bank forecasts global economic growth to slow to 2.5 per cent in 2026, marking the weakest pace since the Covid 19 pandemic. Rising energy costs and disruptions linked to conflict in the Middle East are among the factors weighing on the global outlook.
Against that backdrop, India continues to emerge as one of the world’s strongest performing major economies. The World Bank’s latest projections indicate that the country is likely to remain the fastest growing major economy, supported by favourable demographics,
