India will become a $5.6 trillion economy by 2020, according to research firm Dun & Bradstreet, which has predicted a three-fold jump in the country's GDP from $1.7 trillion last fiscal on the back of rapid investment and growing consumer expenditure.
"Indian economy will become a $5.6 trillion economy by fiscal 2020, at current market price, from the $1.73 trillion in fiscal 2010-11," Dun & Bradstreet India Senior Economist Arun Singh said.
The rate of investment, consumer expenditure and infrastructure spending will be the driving force behind the country's economic growth over the next 10 years, he said, adding that these conclusions are part of a D&B report -- titled, 'India 2020' -- which is scheduled to be released tomorrow.
The share of discretionary spending is projected to increase considerably to 72% of private consumption expenditure from around 60% in FY'10.
Besides, the share of the services sector is expected to surge from 57.3% of the GDP in FY'10 to 61.8% in FY'20.
Another major contributor to the growth would be rapid investment in the infrastructure area. Infrastructure sector spending is expected to rise to 12.1% of the GDP by FY'20 from around 7% of the GDP in FY'11.
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In terms of regions, eight states -- Maharashtra, Gujarat, Andhra Pradesh, Bihar, Madhya Pradesh, Rajasthan, Orissa and Uttar Pradesh -- would contribute 71% of the total GDP in the next 10 years, as compared to 66% in FY'10.
Further, the report said Maharashtra, Gujarat and Andhra Pradesh will be amongst the most developed states in the country by 2020 and would together contribute 32% to the overall GDP.
The BIMAROU states (Bihar, Madhya Pradesh, Rajasthan, Orissa & Uttar Pradesh) are also expected to contribute significantly to India's growth story during the current decade.
The contribution of BIMAROU states will be about 24% of the GDP by FY'20, as compared to 21% during FY'10, Singh said.
Notably, four of the five BIMAROU states are expected to see a double-digit average growth over the current decade.