12/28/2017 2:34:52 PM
|written By : Team India Se|
India will overtake Britain and France to become the world's fifth largest economy in 2018, according to a British research organisation.
"The World Economic League Table shows that, despite temporary setbacks from demonetisation and the introduction of the new GST tax, India's economy will still catch 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," said Douglas McWilliams, deputy chairman of the Centre for Economics and Business Research (CEBR), which released the report.
The CEBR projections give India the fifth spot a year ahead of the International Monetary Fund estimates, which move it up in 2019.
According to the IMF, the size of India's economy is currently US$2.439 trillion. With an annual growth rate of 6.7 per cent in 2017 and 7.4 in 2018, it expects the size of India's economy to be US$2.926 trillion in 2019, when it will pull ahead of France and Britain, according to its projections.
The world's largest economies now are the US (US$19.362 trillion), China (US$11.937 trillion), Japan (US$4.884 trillion), Germany (US$3.652 trillion), France (US$2.575 trillion), Britain (US$2.565 trillion) and India, according to the IMF.
China will become the world’s largest economy, overtaking the US, in 2030, said the CEBR report. This would be a remarkable achievement for an economy that was only 12 per cent the size of the US economy as recently as 2000, it added.
The Indian economy has been larger than that of the majority of Western economies for most of history, said the CEBR report.
It was only in 1906 that the UK economy overtook the Indian economy, while the French economy was smaller than the Indian economy until 1951.