The Indian economy is on the path of exponential growth and is expected to join 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 small, but once it starts to roll, it gets bigger and bigger. What India is seeing now is exponential growth," he told NDTV's Vishnu Som, on the sidelines of the World Economic Forum 2024 in Davos.
"We expect if things continue with reform and there is peace (geopolitically), fight against red tape, investments in R&D and infrastructure. I expect India become a $10 trillion economy by the end of this decade," he said.
The U.S. and China are the only two economies larger than $10 trillion. India, which has the world's fifth largest GDP, is currently estimated to be at $3.7 trillion.
Brende said India is positioned to grow faster since its economy is services-oriented and the digital services trade boom in the world is to its benefit. This is in contrast with a slowing China, which dominates global merchandise trade.
The global scenario, with regard to geopolitical conflicts, has dragged down growth outlook worldwide, he said. However, he expects the U.S. to skirt recession and China to pick up some momentum in the fourth quarter.
Artificial intelligence will have short-term bearing on employment prospects, but in the longer run, economies will benefit from increased productivity and competitiveness, he said.
"In India, AI can replace jobs, but then you can move those people into higher productivity role, increase welfare and eradicate poverty," he said.
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