Wolfgang Kaehler | Lightrocket | Getty ImagesIndia is poised to become the world's second-largest economy by 2075, leapfrogging not just Japan and Germany, but the U.S. too, says Goldman Sachs.
"Over the next two decades, the dependency ratio of India will be one of the lowest among regional economies," said Goldman Sachs Research's India economist, Santanu Sengupta.
Sengupta added that the key to drawing out the potential of India's rapidly growing population is to boost the participation of its labor force.
The Achilles heel to the bank's projection is the labor force participation rate — and whether it increases at the rate which Goldman projects.
"The labor force participation rate in India has declined over the last 15 years," the report noted, underlining that women's participation rate in the labor force is "significantly lower" than men's.
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