18:26 GMT18 April 2021
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    India’s economy may overtake economic powerhouses like the UK and France and become the world’s fifth largest economy by next year, according to a report by the Centre for Economics and Business Research’s 2018 World Economic League Table.

    Despite setbacks that were imposed by restrictions on demonetization and the implementation of the Goods and Service Tax, India has an upbeat economic future.

    Cheap energy and technology prices will boost the global economy, and Indian economic growth is a part of a trend seen in Asian markets in general, a report by the Centre for Economics and Business Research said.

    "Despite temporary setbacks… India's economy has still caught up with that of France and the UK and in 2018 will have overtaken them both to become the world's fifth largest economy in dollar terms," deputy chairman of the Centre for Economics and Business Research, Douglas McWilliams said.

    It would be a major leap for India from its current ranking, the report said.

    “India will eventually overtake the UK because its growth rate in the next two to three years is projected to be close to 7% per year, whereas the UK and France growing on average 1 to 2%,” Dr. Ganeshan Wignaraja, chair of the Global Economy Programme at the Lakshman Kadirgamar Institute in Sri Lanka, told Radio Sputnik in an interview.

    According to the analyst there are many factors for the economic rise of India.

    “One is demographics, India will add 20 million people between the ages of 15 to 24 in the next few years and this is a dramatic change, the demographics. Another one is that India is investing very heavily in infrastructure and this means modernization of the railways, ports, electricity supply and that is a major change,” Wignaraja said.

    He added that the country is also bringing in structural reforms and these are benefiting the Southern Indian states, which are becoming manufacturing hubs, adding to the global value change.

    Chinese and the US Economies

    According to the report by the Centre for Economics and Business Research, China has been predicted to overtake the US as the world’s largest economy by 2032. Meanwhile, the US will retain its supremacy for a year longer than initially anticipated, as the impact of President Trump on trade has been less dramatic than expected.

    The World Economic League Table 2018 ranks the world’s developed and emerging economies by gross domestic product (GDP) measured in US dollars at market prices to 2032.

    “The national output in ‘current US dollars at market exchange rates’ is used as a measure of real money rather than statistical constructs such as purchasing power parity or inflation-adjusted prices,” according to the center.

    The views and opinions expressed by the analyst do not necessarily reflect those of Sputnik.

    The views and opinions expressed in the article do not necessarily reflect those of Sputnik.


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