In a big boost to the economy, India has overtaken both France and the UK to become the world’s fifth-largest economy in the world in 2019 as per the report of the economic forecasts for 193 countries to 2034 by the Centre for Economic and Business Research. The report further stated that India is expected to overtake Germany to become the fourth-largest economy in 2026 and Japan to become third-largest in 2034.
"India has decisively overtaken both France and the UK to become the world's fifh largest economy in 2019. It is expected to overtake Germany to become fourth largest in 2026 and Japan to become the third largest in 2034. India is also set to reach a GDP of $5 trillion by 2026 - 2 years later than the current government target."
According to the Centre for Economics and Business Research (CEBR) Japan, Germany, and India will battle for the third position over the next 15 years.
“Slow growth during the year has increased pressure for more radical economic reforms. Our prediction that India will overtake Germany and then Japan to become the world’s third-largest economy in 2034 assumes success in implementing such reforms,” it said.
In reference to Prime Minister Narendra Modi-led government's target of taking the economy to 5 USD trillion by 2024, it said, "India is also set to reach a GDP of USD 5 trillion by 2026 - 2 years later than the current government target." Accoring to sources, the report identified three other fastest-rising Asian economies- Bangladesh, Malaysia, and the Philippines. The report further stated that Korea will become one of the world’s top ten economies by 2027.
India's economy is expected to rebound in 2020 on the back of measures taken by the government and the RBI coupled with easing of global trade tensions, industry body CII said on Sunday. The chamber also suggested a flexible fiscal policy that will set a central government's target for the deficit in the range of around 0.5 to 0.75%, and said it is likely to have a significant multiplier effect on the economy.
"With the proactive measures taken by the government and the Reserve Bank of India (RBI), industry believes that the slowdown will be overcome, and a gradual recovery will soon be in place."
(With Agency Inputs)